20 Drachmai – Greece

In 1973, Greece's currency situation was defined by the authoritarian rule of the "Regime of the Colonels" and its struggle to control a deteriorating economy. The official currency, the drachma, was under severe pressure due to a combination of internal mismanagement and external shocks. The government of Georgios Papadopoulos, seeking a veneer of economic legitimacy, had pursued rapid industrialization and infrastructure projects fueled by heavy borrowing and loose monetary policy. This led to significant inflationary pressures, which were dramatically exacerbated by the global 1973 oil crisis. As energy costs skyrocketed, Greece's balance of payments worsened, and inflation surged into double digits, eroding purchasing power and creating widespread economic anxiety.

The regime responded with strict, politically motivated controls rather than sound economic adjustment. To defend the drachma's fixed exchange rate and conserve foreign reserves, the government imposed severe import restrictions and capital controls. These measures aimed to prevent currency flight and maintain an artificial stability, but they ultimately stifled business activity and created shortages of goods. The economic distortions were compounded by international isolation, as many democracies maintained a distant stance toward the junta, limiting access to favorable credit and investment.

Consequently, 1973 represented the calm before a deeper storm. The currency controls papered over fundamental weaknesses, storing up severe problems for the near future. The underlying inflationary crisis and loss of confidence would erupt fully after the regime's collapse in 1974, leading to a major devaluation of the drachma and setting the stage for the chronic economic instability that would challenge Greece's democratic governments in the subsequent decades.