The introduction of the pengő
After World War I devaluated korona was replaced by an also gold-based pengő as of 1 January 1927 pursuant to Act XXXV of 1925 in order to stabilise the economy. 1 pengő was equal to 12,500 koronas. In the first years, pengő was considered to be the strongest currency in Central Europe.
The name selection of the new currency attracted a lot of attention. People wanted a name that sounded Hungarian. Former money names were also suggested. Several people voted for turul, máriás, libertás, turán and tallér, finally, the decision of the Hungarian Numismatic Society was adopted and the name pengő as an onomatopoeia, already known from pengő forint was selected.
The new Mint and Banknote Printing House was established in Budapest in 1925.
Only a few 10 and 20 pengő gold coins were minted, which were never circulated. An open tender was announced for the design of subunits and 72 tender documentations were received. The denominations of 1, 2, 10, 20 and 50 fillér coins were minted based on the design created by formerly unknown architect student, János Pálinkás.
1, 2 and 5 pengő coins were made of silver until World War II. Multiple thematic silver coins were put into circulation in the mid-’30s in relatively large numbers. 2 pengő coins were minted as a tribute to Péter Pázmány, II. Ferenc Rákóczi and Ferenc Liszt, while 5 pengő notes were minted as a tribute to King Saint Stephen. During the war, silver and even bronze coins were replaced by non-precious metals, and at the end of the war, all metal coins disappeared from circulation.
Five artists were commissioned to design the first series of banknotes in 1926. Ferenc Helbing’s designs were chosen. The first series was replaced by new banknotes soon primarily due to safety reasons. Subsequent banknotes were designed by Zoltán Egri and Álmos Jaschik, and later by Endre Horváth. The pengő banknotes depicted key historical figures of Hungary: Ferenc Deák, Lajos Kossuth, King Matthias Rex, King Saint Stephan and Francis II Rákóczi. The last two were depicted on both coins and banknotes. The back side of banknotes depicted Hungarian artworks. After the Treaty of Trianon, Hungary’s population became predominantly Hungarian, nevertheless, the denominations on the pengő banknotes continued to be printed in the language of the national minorities, as was the case with the korona.
The circular inscription on the metal coins of the kingdom without a king stated KINGDOM OF HUNGARY, the metal coins and banknotes featured the crown coat of arms.
Source: Fortepan