A New Form of Currency, the Pengő, is introduced

Economic depression was brought to a standstill through consolidation policies credited to Prime Minister István Bethlen. The financial backing for introducing the pengő, a new currency used to replace the unstable korona, was possible due to a loan of 307 million gold koronas from the People’s Alliance. This step not only represented the nation’s integration within the peace system formed by the Entente, it also broke the isolation that had gripped Hungary’s position in foreign affairs.