1 Groszy – Poland

In September 1939, Poland entered World War II with a relatively stable but controlled currency system. The official currency was the złoty, introduced in 1924 following a period of hyperinflation, and it was backed by gold and foreign exchange reserves. The Bank of Poland, while privately owned, held the note-issuing privilege and maintained a fixed exchange rate. However, the economy was still largely agrarian, and the state exercised significant control over financial flows and foreign exchange, reflecting the authoritarian policies of the Sanation government in the pre-war years.

The German invasion on September 1st and the subsequent Soviet invasion on September 17th caused immediate financial chaos. As the Polish government and the Bank of Poland evacuated Warsaw and eventually fled into exile, the orderly monetary system collapsed. The occupying powers moved swiftly to dismantle Poland's financial sovereignty. In the German zone, the Reichsbank immediately set an artificial, exploitative exchange rate (2 złote for 1 Reichsmark) and began introducing occupation currency, while systematically looting Polish bank reserves, gold, and industrial assets to finance the German war effort.

Simultaneously, the Soviet Union declared the złoty void in its occupied territories and forcibly introduced the Soviet ruble at a confiscatory rate, further impoverishing the population. This deliberate fragmentation created a dual-currency reality under occupation, severing economic unity and paving the way for the complete replacement of the złoty. The Polish government-in-exile in London would later organize the printing of banknotes for the underground state, but for the duration of the war, Poland's currency became a tool of economic exploitation and a stark symbol of its subjugation.