Greek drachma Explained
Ashly Chole Senior Finance Researcher
Greek drachma Table of Contents
Greek drachma
The verb 'to draw' is where the word 'drachma' is derived from. The creator of the first drachma coin is unknown. The first Greek coins were made of electrum, which was a rectangular lump of silver with a hole in it that could be readily melted down to create smaller pieces. Eventually, the monarchs began issuing silver coinage, though they were first paid for with silver bars rather than coins. Late in the third century AD, another type of Roman currency was created. One pound of pure silver was contained in each of the silver denarii coins that made up the collection. According to their worth, these denarii were split further into halves and quarters.
The Greek drachma served as the country's primary monetary unit
Up until 2001, when the euro supplanted the Greek drachma as the country's primary unit of currency, 'To pull' is the origin of the term 'drachma.' As soon as the Greeks began utilizing coins composed of silver or gold in the fourth century BC, they began using it. Two words—drakon (serpent) and gramos—combine to form the term drachma (coin). With its precise definition, the phrase refers to 'a drawing out of the hand,' which is how people used to get payment in earlier times. Many other currencies in the past went by the name 'drachma.' Each was roughly 4 grams in weight and was made of silver.
Where did the name originate?
Since it was a term for a little currency, the word 'drachma' derives from the verb 'to draw.' Later, the Romans borrowed the term for their larger-valued coins and began using it as well. In truth, the term's origins are pretty intriguing: it derives from the Greek word drakon, which means 'dragon' or 'serpent.' As a result, drachmas were initially fashioned of electrum, an alloy mostly composed of gold but also including some silver. The drachma was first mentioned in writing in Herodotus' Histories, but it wasn't coined at the time it was introduced with silver stater (a large bronze coin). When Greece switched to the euro in 2001, it was still considered legal tender.
Although the drachma was the primary form of currency in use at the time in Greece, other forms of money were also utilized. Aeginetan obols, which were worth one-twelfth of a drachma, were worth one-twelfth of a drachma, while Corinthian staters, composed of silver, were also used. There were also other currencies in circulation, such as gold coins from Athens that featured the goddess Athena and were known as 'owls.'
Keep in mind that, at this time, Greece was a confederation of city-states rather than a single nation. Every town produced its own coins and had its own money. However, there were some characteristics that they all shared, such as the fact that they were all considered legal tender in their respective regions (with some exceptions, such as the 'owls' of Athens); the fact that the majority of them were round in shape and made of metal; and the fact that they all had writing and an image on one side. Each drachm weighed between 3.5 and 4 grams of silver and was manufactured from that metal. A depiction of Athena and an owl perched on an olive branch were found on the coin's obverse, which was thought to shield Athens from danger. Together with the year they were produced, the value of that specific coin, and the word 'Athena' in retrograde calligraphy were all found on the back side of the coin.
Who created the first drachma coin is unknown
The Greek city is said to have produced the first drachma coins. These coins were created from ethereum, which is a combination of gold and silver. Four drachmas, or sixteen grams, were contained in each of the initial drachmas, which were rectangular silver lumps. When Greece joined the Latin Monetary Union (LMU), the tetradrachm, which had four drachmas per piece, took over the role of the drachma. The drachma, a significant component of Greek history and culture, was supplanted with a new coin known as the Hellenic Republic Drachma or 'Greek Drachma.' It was a common form of exchange and a monetary unit in ancient Greece.
The early Greek coins were fashioned from electrum, which was a rectangular lump of silver with a hole in it that could be readily melted down into smaller pieces. Greeks employed the naturally occurring gold and silver alloy known as electrum as early as the 7th century BC. Greek lettering and a picture of an animal, often a stag, were imprinted on opposite sides of rectangular slabs of gold or silver to create electrum coins. Each electrum coin weighed at least 10 grams; hence, they had to be stored in pairs so that each pair weighed at least 10 grams as well, since the worth of electrum coins depended on their weight. This degree of weight standardization ensured that each piece would have its correct worth regardless of where it was sold or exchanged outside of Greece's boundaries.
The rulers began issuing silver coins
Apart from the fact that it has been used as a form of payment for products and services since ancient times, its adoption was primarily intended to decrease inflation. Eventually, the monarchs began issuing silver coinage, though they were first paid for with silver bars rather than coins. The ease with which these 'drachma' could be swapped at any moment, free from concern about exchange rates or other taxes related to foreign currencies, made them immensely popular among Greeks (e.g., dollar bills). Ancient Greece was the first country to employ the Greek drachma as money. The Byzantine Empire also employed it, and many other nations did so similarly in the following centuries. The euro (€), which is still in use today, finally took its place as its replacement.
Roman coinage was added in another
King initially produced silver coins worth five obols (one-sixth of a drachma), or two and two-thirds drachmas, in the fourth century BC, which served as the drachma's first legal tender. Later, gold, silver, bronze, and argentum alloys were used to make the coins that eventually took their place. During time, Greek coins have been used as both currency and as the basis for other coinage, such as when they were incorporated into Roman Imperial Coinage under the Romans' reign over Greece (with some interruptions). The drachma's form was intended to deter counterfeiting, and most coins today still employ it as a security element.