In 1661, the currency situation in Swedish Pomerania was complex and strained, a direct legacy of the Thirty Years' War and Sweden's ongoing military conflicts. The territory, acquired by Sweden in 1648, was economically depleted and integrated into a Swedish imperial system that prioritized extracting resources to fund the crown's wars, particularly against Poland and Denmark. This led to a proliferation of various circulating coins, including local issues, Swedish copper
daler, and a multitude of German and Dutch coins, creating a chaotic and unstable monetary environment that hindered trade and economic recovery.
The core of the problem was Sweden's own monetary policy, which was based on a forced copper standard. To finance its wars, the Swedish crown heavily devalued its copper coinage, and this debased currency was funneled into Pomerania to pay troops and procure supplies. Consequently, the value of money was highly unstable, and prices were subject to sharp inflation. Good-quality foreign silver coins, which were preferred for trade, commanded a significant premium and were often hoarded, leading to a classic "bad money drives out good" (Gresham's Law) scenario that further disrupted the local economy.
Facing this crisis, the Swedish administration in Stettin under Governor-General Carl Gustav Wrangel attempted to impose order. In 1661, efforts were made to regulate the currency by setting official exchange rates between the various circulating coins and the Swedish
daler. However, these measures were largely reactive and struggled against market forces and the sheer volume of debased coinage. The situation remained difficult, reflecting Pomerania's role as a fiscal and military outpost rather than a prospering province, with its monetary stability sacrificed to the broader needs of the Swedish Empire's wartime economy.