Pengő Coin: Kingdom of Hungary (1926-1945)

Illustrated Specimen Details: Kingdom of Hungary 5 Pengő

Example Specimen: 5 Pengő, 1943 — Kingdom of Hungary (the Regency or the Horthy era)

Design & Inscriptions: This circulating commemorative coin features the portrait of Miklós Horthy de Nagybánya, the Hungarian admiral and statesman who served as the regent of the Kingdom of Hungary between the two World Wars and throughout most of World War II (1920–1944). The inscription reads VITÉZ NAGYBÁNYAI HORTHY MIKLÓS MAGYARORSZÁG KORMÁNYZÓJA — SZÜLETÉSÉNEK 75 ÉVFORDULÓJÁRA (Vitéz /valiant/ Miklós Horthy Nagybányai, the Regent of the Kingdom of Hungary — On the 75th anniversary of his birth). Under the portrait is the engraver's symbol BERÁN L (Lajos Berán). The reverse displays the Coat of arms of Hungary featuring two angels, the Holy Crown of Hungary (Crown of Saint Stephen), and the double cross. It is accompanied by the legend MAGYAR KIRÁLYSÁG (Kingdom of Hungary), the denomination 5 PENGŐ, and the Budapest Mint symbol BP.

1. KINGDOM OF HUNGARY (1926-1945): 1 pengő = 100 fillér

Etymology and History of the Pengő

About the name of the coin pengő: The name "pengő" is derived from a Hungarian word meaning the sound of two coins hitting each other. The word can be translated as "ringing coin" or a genuine coin (in ancient times, the originality and quality of a precious metal coin were determined by its ringing). Originally, it referred to the clear ringing sound of high-quality silver coins. Later, after the introduction of paper money into circulation in Hungary, the term "pengő forint" was used to refer to forint coins, literally meaning "ringing forint" (as opposed to paper forints — banknotes).

The pengő was the currency denomination of Hungary between 1927 and 1946 and is historically associated with one of the most severe hyperinflation crises ever recorded.

Monetary System and Historical Context

In Hungary, the monetary system was structured as 1 pengő = 100 fillér. The pengő replaced the earlier korona following the economic instability that arose after World War I and the collapse of Austria-Hungary. Introduced in 1927 as part of efforts to stabilize the Hungarian economy, the pengő initially became a relatively stable and respected national currency.

Hyperinflation Crisis

However, after World War II, Hungary experienced a catastrophic economic collapse. The Hungarian pengő became famous for one of the worst hyperinflation episodes in world history. By 1945–1946, prices increased at extraordinary rates, and enormous banknote denominations were issued, including millions, billions, trillions, and even higher values. Special accounting units appeared, such as the milpengő (million pengő) and the b.-pengő ("billió pengő"). The currency rapidly lost all practical value. In 1946, the pengő was officially replaced by the forint, effectively ending the hyperinflation crisis.

Physical Characteristics and Economic Role

Pengő coinage appeared in silver, nickel, aluminum-bronze, zinc, and various transitional wartime alloys. Designs commonly featured Hungarian national symbols, coats of arms, historical figures, and agricultural or industrial imagery. While the coins successfully served as a stabilization currency during the interwar period, the pengő ultimately became an enduring symbol of extreme inflationary collapse.

Numismatic Notes

Hungary’s inflation period is widely studied in economic history, making its currency highly sought after by collectors. Early silver pengő coins are highly collectible, alongside interwar commemorative issues and transitional wartime coinage. The hyperinflation banknotes from this era are among the most famous emergency currencies in world numismatics, with large-denomination inflation notes being particularly valued.

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