During peace or wartime while in the US we, (GI's) were paid in American cash; less deductions for insurance. If stationed in a fort, large facility, etc Laundry, advances in pay, etc were also deducted. Pay call was sounded and troops lined up according to rank, Officers first, except Field Grade Officers, I think their pay was retreived by ther "Dog Robbers," then enlisted non com by rank and or longivity. The run-of-the mill- inlisted men by whoever got in line first.
While serving in foreign countries the proceedure was the same except the troops were paid in the currency of the host country. When WWII ended and we were in Germany we were paid in Marks, in France we were paid in Francs, etc. I believe the value of foreign money was set by the host country, except I believe that German money was of a value set by the Allies collectively.
The black market however, was a different story. Dealers in cash in foreign countries, France for instance, dealers were paying GI's 3 French dollars (equivelant) for each English dollar, and 4 French dollars for every American dollar. Europeans were all afraid of inflation and their only protection at that time was to convert their money for American or English cash.
Some GI's in the right position have made $3000.00 or $4, 000.00 foreign cash, on a payday.
In God we Trust,
Don Burgett