On January 27, 1945, the world discovered the horror of the genocide carried out by the Nazis and their allies when the concentration and extermination camp of Auschwitz-Birkenau was liberated. Auschwitz has become a symbol of terror, genocide, and the Shoah. The UN proclaimed this dateThe year in which a medal or coin was minted. On a banknote, the date is usually the year in which the issuance of that banknote - not its printing or entering into circulation - was formally authorised. More to be the International Day of Commemoration in memory of the victims of the Holocaust.
Nazi concentration camps were centers of unimaginable suffering, deprivation, and inhumanity. Among the many perverse aspects of their administration was the use of currencyThe money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsement as a medium of exchange. More within the camp system. While the idea of money evokes notions of freedom and choice, in the concentration camps, it served as a tool of control, propaganda, and exploitation. From the use of camp-issued currencies like Lagergeld to informal barter systems among prisoners, money held a strange and grim place in the machinery of Nazi oppression.
The Nazis introduced a unique currency, known as Lagergeld or “camp money,” in many concentration camps. This currency was not legal tenderMoney that is legally valid for the payment of debts and must be accepted for that purpose when offered. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered (“tendered”) in payment of a debt extinguishes the debt. There is no obligation on the creditor to accept the tendered payment, but the act of tendering the payment in legal tender discharges the debt. More outside the camp; it was essentially a closed system created to maintain control over prisoners and facilitate camp economies. Lagergeld notes typically featured denominations in marks and were stamped with the name of the camp or an official insignia. Camps such as Dachau, Buchenwald, and Auschwitz used versions of these notes. The Holocaust Museum in Houston has curated a comprehensive collection of Lagergeld notes and ghetto currencies.
Lagergeld served several purposes. Firstly, it gave the illusion of normalcy and humane treatment, especially during inspections by the Red Cross or other international observers. Secondly, it was a tool to keep prisoners economically dependent within the camp. Prisoners who were assigned jobs—often in labor-intensive industries linked to the Nazi war effort—were sometimes compensated with small amounts of Lagergeld. They could use this “money” to purchase limited items from camp canteens, such as food supplements, cigarettes, or basic hygiene products. However, this system was deeply inequitable and exclusionary; the vast majority of prisoners, particularly Jews and other marginalized groups, had no access to such privileges.
In his 1947 memoir, Survival in Auschwitz, Primo Levi refers to what he calls “prize-coupons,” which prisoners would exchangeThe Eurosystem comprises the European Central Bank and the national central banks of those countries that have adopted the euro. More for cheap tobacco or bread. Levi describes how the coupons, distributed by Nazi camp officials, “circulate on the market in the form of money, and their value changes in strict obedience to the laws of classical economics.” Levi goes on to relate how the value of these coupons would fluctuate at random, and how some days “the prize-coupon was worth one ration of bread, then one and a quarter, even one and a third; one day it was quoted at one and a half ration.”
For the majority of prisoners, especially those in extermination camps like Auschwitz, access to Lagergeld or camp-issued currency was nonexistent. In these environments, an informal barter system became a critical survival mechanism. With food being the most precious commodity, items such as bread or soup rations were often traded for other essentials, like clothing, shoes, or soap. Cigarettes, in particular, became a de facto currency because of their high value and versatility in exchanges.
This underground economy also extended to stolen goods. Prisoners working in sortingProcess of fitness sorting of banknotes by their condition of use. Through this process, used banknotes are classified as fit or unfit to return into the circulation. See Processing of banknotes. More areas—such as the infamous “Canada” warehouses at Auschwitz, where confiscated belongings were processed—sometimes smuggled items back into the camp. These goods could then be traded for extra food or small favors, despite the grave risk involved. The barter system highlighted the resilience and ingenuity of prisoners as they sought ways to survive in the face of inhumane conditions.
While the Nazis confiscated all valuables upon a prisoner’s arrival, some individuals managed to smuggle money, jewelry, or other items into the camps. These valuables were sometimes used to bribe guards or kapos (prisoner overseers) for protection, better work assignments, or even extra rations. Real currency, particularly Reichsmarks or foreign money, also found limited use in ghettos and certain camps where external transactions were occasionally allowed.
The risks associated with bribery were immense. Discovery could lead to severe punishment or death. Yet, for many prisoners, the potential benefits outweighed the dangers. A successful bribe could mean the difference between life and death, securing extra calories to stave off starvation or avoiding a brutal beating.
The use of money in Nazi-controlled ghettos further illustrates how the Nazis manipulated economic systems to oppress and exploit Jewish populations. In ghettos like Łódź and Theresienstadt, local currencies were issued, similar to Lagergeld. These notes, often bearing intricate designs, were worthless outside the ghetto and served to isolate Jewish populations from the broader economy. The ghetto economies were tightly controlled, with residents forced to rely on these currencies for basic needs, despite their limited purchasing power.
In Theresienstadt, the Nazis cynically used currency as part of their broader propaganda effort. The camp was presented as a “model ghetto” to deceive international observers, complete with its own banknotes featuring Jewish motifs. These notes symbolized the perverse cruelty of the Nazi regime, which used the appearance of order to mask the horrific reality of exploitation and genocide.
Auschwitz, the largest and most infamous Nazi concentration and extermination camp, had its own version of Lagergeld. Issued primarily to certain groups of prisoners, such as kapos or skilled laborers, this currency was used in the camp’s limited canteen system. However, for the vast majority of prisoners, especially Jewish inmates, money—real or otherwise—was irrelevant. Upon arrival, all possessions were confiscated, and survival hinged on labor, luck, and resilience rather than financial resources.
The “Canada” warehouses at Auschwitz played a significant role in the camp’s informal economy. These storage facilities, where belongings of deported individuals were sorted, became a source of contraband for prisoners working there. Smuggled items were often bartered for food or other necessities, forming a desperate and dangerous underground network.
The use of money in Nazi concentration camps was a grim reflection of the systematic dehumanization that characterized the Holocaust. From the issuance of Lagergeld to the barter systems born of desperation, economic activity in the camps was a distorted parody of normal life, manipulated to control and exploit prisoners. Yet, within this system of oppression, prisoners displayed extraordinary resilience, using whatever means they could to survive. As we remember the liberation of Auschwitz 80 years ago, we honor not only the victims but also the indomitable spirit of those who found ways to endure in the face of inhumanity.