1 Pengő Russian Occupation, smaller

These notes were issued by Soviet occupation authorities in Hungary beginning in late 1944, before a functioning postwar Hungarian monetary authority existed. The Red Army command printed and distributed its own currency — denominated in pengő to ease acceptance — as a mechanism for requisitioning goods and services from the local population without spending hard currency. The arrangement was entirely unilateral; the Hungarian National Bank had no role in authorizing the series.

The "smaller" designation in the trade distinguishes this format from a later, slightly larger variant catalogued separately. Both circulated concurrently, which caused persistent confusion at the point of exchange.