Estonia was part of the Russian Empire until it declared its independence from Russia on February 24, 1918. A Baltic State, consisting of Estonia, Latvia and Lithuania was nominally set up on April 12, 1918, but was never consummated. Estonia was under German occupation until November 11, 1918. The Estonian Conciliar (Soviet) Republic was set up on November 29, 1918, and Estonia maintained its independence until World War II.
In 1939, the Estonian government gave in to Stalin's demand and permitted Soviet troops to be stationed on Estonian soil. Estonia then gave in to another demand and formed a coalition government, taking in communist ministers. These then staged a coup, ousting the democrats, declared the country to be a people's republic and requested admission to the USSR, becoming the Estonian Soviet Socialist Republic on July 21, 1940 and was formally incorporated into the USSR on August 6, 1940. Germany occupied Estonia from July 1941 to October 1944 and made it part of Ostland (Estonia, Latvia, Lithuania, Courland and parts of Belarus). The Soviet Union reincorporated Estonia into the Soviet Union in 1944. The Republic of Estonia was formed on May 8, 1990 and it declared its independence on August 20, 1991.
Russian Rubles (RUEP) and Finnish Markkaa (FIN) circulated in Estonia while it was part of the Russian Empire. The Ruble was divisible into 100 Kopeks, and the Markka was divisible into 100 Pennia. Germany occupied parts of Estonia during World War I, and Germany issued both Darlehnskasse Ost Rubles (DEOR) and Darlehnskasse Ost Marks (DEOM) for use in occupied territories, with 1 Mark equal to 2 Rubles. The Estonia Marka (EEM) was introduced in 1918 at par with the German Mark, but it did not depreciate along with the Mark during Germany’s hyperinflation. The Kroon (EEN) was introduced as a unit of account in June 1924 with 1 Estonian Kroon equal to 100 Estonian Mark, and the Kroon was issued as a currency on January 1, 1928. The Mark was divisible into 100 Penni, and the Kroon was divisible into 100 Senti. Banknotes were issued by the government from 1919 until 1929, and by the Bank of Estonia from 1929 until 1940. Estonia left the Gold Standard on June 20, 1933.
After the Soviet Union invaded Estonia, the Soviet Gold Ruble (SUG) was introduced as the medium of exchange. During Germany’s occupation, Estonia was made part of Ostland. Although a Central Bank for Ostland was established in Riga, no Ostland Marks were ever issued, and Reichskreditkassenschein, along with German Marks, circulated instead. After Estonia was reincorporated into the Soviet Union, a New Ruble (SUN) replaced the Gold Ruble on December 29, 1947 at the rate of 1 New Ruble equal to 10 Gold Rubles. On January 1, 1961, the Hard Ruble (SUR) replaced the New Ruble at the rate of 1 Hard Ruble equal to 10 New Rubles. Under the Soviet Union, the State Treasury and by the State Bank (Gosbank) issued banknotes.
After Estonia declared its independence, Soviet Rubles continued to circulate until the Estonian Kroon (EEK) was introduced on June 21, 1992 with 1 Kroon equal to 10 Soviet Rubles. Estonia introduced a currency board on June 20, 1992, linking the Kroon to the German Mark at the rate of 1 DEM = 8 EEK. The Eesti Pank (Bank of Estonia is the sole note-issuing authority. |
