Staatsbank - Forum Checks, Intershops and Genex

Forum Checks, Intershops and Genex

In order to overcome this obvious disincentive to compliance with the internal foreign exchange rate regime, the State Bank allowed hard currency to be exchanged for Forum checks – a form of internal currency that (crucially) could be spent at an Intershop. These were a chain of special shops that offered high quality East German goods (that were otherwise difficult to obtain without joining a long waiting list) at reasonable prices and otherwise unobtainable Western consumer goods (usually at near Duty free price levels) – they were accessible only to foreign tourists with hard currency and East German citizens with Forum checks. Forum Checks were purchased at the unrealistic rate of 1 East German Mark for 1 Deutschmark – the typical black market exchange rate varied from 5 – 10 East German Marks to the Deutschmark.

In addition, it was also possible for holders of a foreign exchange account to order from the hard currency mail order GENEX catalog (GENEX gift service GmbH). This had originally been established to allow Westerners to legitimately send Eastern relatives Western brand (and export quality Eastern) consumer goods, wines, jewellery, delicacies etc. in exchange for hard currency. When used by the holder of a foreign exchange account for such an “internal” GENEX purchase, the cost of the order was debited directly from the account by Giro or Cheque Clearing methods.