The German economy was so weak that only a small percentage of reparations was paid in hard currency.
Nonetheless, even the payment of this small percentage of the original reparations (132 billion gold marks) still placed a significant burden on the German economy.
Although the causes of the devastating post-war hyperinflation are complex and disputed, Germans blamed the near-collapse of their economy on the treaty, and some economists estimated that the reparations accounted for as much as one-third of the hyper-inflation.

In March 1921, French and Belgian troops occupied Duisburg, Düsseldorf, and other areas which formed part of the demilitarized Rhineland, according to the Treaty of Versailles.
In January 1923, French and Belgian forces occupied the rest of the Ruhr area as a reprisal after Germany failed to fulfill reparation payments demanded by the Versailles Treaty.
The German government answered with "passive resistance", which meant that coal miners and railway workers refused to obey any instructions by the occupation forces.
Production and transportation came to a standstill, but the financial consequences contributed to German hyperinflation and completely ruined public finances in Germany.
Consequently, passive resistance was called off in late 1923.
The end of passive resistance in the Ruhr allowed Germany to undertake a currency reform and to negotiate the Dawes Plan, which led to the withdrawal of French and Belgian troops from the Ruhr Area in 1925.
The German economy was so weak that only a small percentage of reparations was paid in hard currency. Nonetheless, even the payment of this small percentage of the original reparations (132 billion gold marks) still placed a significant burden on the German economy. Although the causes of the devastating post-war hyperinflation are complex and disputed, Germans blamed the near-collapse of their economy on the treaty, and some economists estimated that the reparations accounted for as much as one-third of the hyper-inflation.
In March 1921, French and Belgian troops occupied Duisburg, Düsseldorf, and other areas which formed part of the demilitarized Rhineland, according to the Treaty of Versailles. In January 1923, French and Belgian forces occupied the rest of the Ruhr area as a reprisal after Germany failed to fulfill reparation payments demanded by the Versailles Treaty. The German government answered with "passive resistance", which meant that coal miners and railway workers refused to obey any instructions by the occupation forces. Production and transportation came to a standstill, but the financial consequences contributed to German hyperinflation and completely ruined public finances in Germany. Consequently, passive resistance was called off in late 1923. The end of passive resistance in the Ruhr allowed Germany to undertake a currency reform and to negotiate the Dawes Plan, which led to the withdrawal of French and Belgian troops from the Ruhr Area in 1925.
Treaty of Versailles