Since 2002, the Euro (€) has been the official currency in Germany and therefore also in Bavaria. It replaced the former “Deutsche Mark” (DM), which can no longer be used for payments. If you still have old DM coins or notes, they can be exchanged for Euro at the German Federal Bank (Bundesbank) in Munich, with the fixed conversion rate of 1 € = 1.95583 DM.
Even today, some Germans argue that the introduction of the Euro made everyday life more expensive. The term “Teuro” (a play on words combining teuer = expensive and Euro) is still used by older citizens who remember the early years when shopkeepers often rounded up prices. However, almost two decades later, the Euro is fully established and makes traveling across Europe much easier.
Where the Euro Is Used
The Euro is the national currency in 20 EU member states as well as several small territories, meaning that tourists can travel across much of Europe without exchanging money. For tourists from non-EU countries, this is highly convenient – once you withdraw or exchange for example US-Dollars into Euro, you can use the same currency in many different countries during your trip.
If you arrive from a non-Euro country, you can easily get cash at an ATM (German: Geldautomat) or exchange money at banks. Credit cards are widely accepted in hotels, restaurants, and shops, but cash is still king in Germany, especially in smaller cafés, beer gardens, or local markets.
Euro Banknotes and Coins
For first-time visitors, Euro money might seem unfamiliar, but the system is straightforward. It follows the decimal system, just like the US dollar:
Banknotes are issued in denominations of €5, €10, €20, €50, €100, €200, and €500, each with its own color and design.
Coins exist as 1, 2, 5, 10, 20, and 50 cents, plus €1 and €2 coins.
What makes Euro coins unique is their two-sided design. The front side always shows the value, but the backside is different depending on the issuing country. German coins, for example, display an oak leaf on the small cent coins, the Brandenburg Gate on 10, 20, and 50-cent coins, and the federal eagle (Bundesadler) on €1 and €2 coins. Other countries feature their own national symbols – Italy shows Leonardo da Vinci’s Vitruvian Man, Greece features an owl, Austria has alpine flowers, and Spain once displayed King Juan Carlos I.
No matter which country issues them, all coins are valid everywhere in the Eurozone (countries that use the Euro). So don’t be surprised when you find coins from France, Ireland, or Spain in your wallet after a few days in Munich.
Special and Commemorative Coins
Between 2006 and 2021, Germany issued commemorative €2 coins featuring landmarks from its 16 federal states. In 2012, Bavaria was represented with the famous Neuschwanstein Castle. These coins circulate alongside regular ones and are valid everywhere, making them a fun souvenir for travelers. Good luck finding one in your wallet.
Practical Tips for non-EU Tourists
Cash vs. card: Always carry some cash, as not every place in Munich accepts credit cards.
ATMs: Use official bank ATMs (Geldautomat) to avoid high fees charged by independent machines.
Exchange rate: The exchange rates change daily. Check before traveling and avoid exchanging at airport counters if possible, as they often charge higher fees.
Budgeting: Prices in Munich are generally in line with other Western European cities. Compared to other German cities, Munich is one of the most expensive cities in Germany.
Conclusion
The Euro makes traveling in Munich and across Europe simple and convenient. For non-EU-tourists, the key is to get familiar with the banknotes and coins, carry some cash for small purchases, and use ATMs or credit cards wisely. Once you get used to the system, handling money in Munich is straightforward – and you might even enjoy collecting a few of the unique Euro coins as souvenirs from your trip.