What Currency Is Used in Germany?

What currency is used in Germany?

If you're planning a trip to Berlin, doing business with German suppliers, or shopping from a German retailer, it’s essential to know what currency is used. This guide is written for travellers, expats, importers, and finance professionals seeking clear, practical information. We’ll explain what currency Germany uses, how it works, and how to manage it effectively while avoiding common financial mistakes.

Germany’s official currency: the Euro (EUR)

Germany uses the euro, abbreviated as EUR and symbolised by €, as its official currency. One euro is divided into 100 cents. The euro replaced the Deutsche Mark (DM) in 2002, following Germany’s entry into the Eurozone.

As the largest economy in the European Union, Germany plays a central role in the Eurozone, a monetary union of 20 EU countries that share a single currency and common monetary policy.

Euro denominations in use:

• Coins: 1, 2, 5, 10, 20, and 50 cents; €1 and €2

• Banknotes: €5, €10, €20, €50, €100, €200, and €500 (note that €200 and €500 notes are rarely used in everyday transactions)

All euro coins and notes are valid throughout Germany, regardless of which Eurozone country issued them. German euro coins have a national design on one side—such as the Brandenburg Gate or the federal eagle—but can be spent anywhere across the euro area.

Where the euro is used in Germany

The euro is used nationwide, including in cities like Berlin, Munich, Hamburg, Cologne, and Frankfurt, as well as in rural areas and small towns. All goods, services, wages, public transport, and legal transactions are conducted in euros.

If you’re visiting Germany from outside the Eurozone, you will need to convert your home currency into euros. US dollars, pounds, Swiss francs, and other foreign currencies are not accepted for direct payment.

How the euro works in Germany

Germany’s monetary policy is managed by the European Central Bank (ECB), based in Frankfurt. The ECB sets euro interest rates, monitors inflation, and issues currency on behalf of all Eurozone members. Germany no longer has an independent national currency or central bank policy.

Exchange rates between the euro and non-euro currencies such as the British pound or US dollar fluctuate based on global market conditions. For example:

• £1 may exchange for around €1.15 to €1.18

• $1 may exchange for around €0.90 to €0.95

These rates vary with interest rate changes, inflation, economic data, and political developments.

Benefits and considerations of using the euro in Germany

Benefits:

• Ease of use across Europe: One currency for 20 countries simplifies travel and business within the EU.

• Stable and widely recognised: The euro is one of the most trusted and liquid global currencies.

• Convenient payments: Widely supported by contactless, chip-and-PIN, and digital wallets.

Considerations:

• Exchange fees for non-euro travellers, especially at airports or kiosks.

• Cash preference in some places: While card usage is growing, many small shops and cafés still prefer cash.

• Dynamic currency conversion traps: Choosing to pay in your home currency on a card terminal can lead to poor rates.

Common misconceptions

A common myth is that Germany still uses the Deutsche Mark. The mark was permanently retired in 2002. While the Bundesbank will still exchange old notes and coins for euros, they are no longer accepted in shops.

Another misconception is that Germany is a cash-only society. While Germany has traditionally preferred cash, contactless card payments and mobile wallets are now widely accepted, particularly in cities and retail chains.

Tips for managing your money in Germany

• Withdraw euros from ATMs using cards that offer fee-free international transactions—look for machines operated by Sparkasse, Deutsche Bank, or Commerzbank.

• Avoid exchanging money at airports, where rates are often less favourable.

• Always choose to pay in euros if prompted on card terminals—decline dynamic currency conversion.

• Carry some cash, especially in markets, bakeries, and small businesses that may not accept cards.

• Use digital payment apps like Apple Pay or Google Pay in urban areas, which are increasingly supported.

FAQs

Can I use pounds or US dollars in Germany?
No. All payments in Germany must be made in euros.

Are credit and debit cards accepted everywhere?
Most large retailers, supermarkets, and restaurants accept cards. Smaller businesses may prefer cash, so it’s wise to carry both.

Should I exchange money before travelling or in Germany?
It’s usually better to withdraw euros locally at a bank ATM using a low-fee card rather than exchanging large amounts of cash before you go.

Is tipping expected in Germany?
Yes, though modestly. It’s common to round up or leave a 5–10% tip in restaurants and for service staff.

Real-life example

A tourist from the US travels to Munich with $1,000. Instead of exchanging cash before travel, they use a travel debit card to withdraw €200 from a Deutsche Bank ATM at a better rate. They pay for hotels and large purchases by card, and use cash for food markets, buses, and tipping. Choosing to pay in euros instead of dollars at card terminals saves them from hidden charges and keeps their trip on budget.