Are Francs Still Used Anywhere in the World?

Currencies have undergone significant transformations, evolving from various forms of exchange to standardized systems. The “franc” as a unit of currency has appeared in different regions and eras, reflecting historical ties or independent monetary developments. Understanding its use provides insight into global financial evolution.

The French Franc and the Euro

The French franc, France’s national currency, ceased to be legal tender with the adoption of the euro. This transition began on January 1, 1999, when the euro was introduced as an accounting currency, with its value against the French franc fixed at 1 euro = 6.55957 French francs.

Euro coins and banknotes replaced the franc in physical circulation between January 1 and March 1, 2002. The move to the euro was part of a broader economic integration effort within the European Union. Eliminating exchange rate risks among member countries aimed to intensify trade and foster economic stability and growth.

Both currencies circulated simultaneously for a period, facilitating a smoother changeover. While euro coins and notes became the sole legal tender in early 2002, French citizens had a longer window to exchange their old franc banknotes. The Banque de France continued to accept franc notes for exchange into euros until February 17, 2012. After this date, any remaining French franc banknotes became worthless.

Francs in Use Today

While the French franc is no longer in circulation, several other currencies worldwide still bear the name “franc.” The Swiss Franc (CHF) is the official currency of Switzerland and Liechtenstein, also accepted in the Italian exclave of Campione d’Italia.

Another significant group is the CFA Franc, existing in two distinct forms: the West African CFA franc (XOF) and the Central African CFA franc (XAF). The West African CFA franc is used by eight countries: Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. The Central African CFA franc serves six countries: Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea, and Gabon. Both CFA francs are pegged to the euro at a fixed exchange rate.

The Comorian Franc (KMF) is the official currency of the Union of the Comoros. This currency was historically pegged to the French franc and is now fixed to the euro. The Djiboutian Franc (DJF) is the national currency of Djibouti, pegged to the U.S. dollar since 1973.

Distinguishing Different Franc Currencies

Not all currencies named “franc” share a direct historical lineage or the same economic relationships. The Swiss franc, introduced in 1850, is an independent currency known for its stability and separate monetary policy. Although it was initially linked to the French franc, Switzerland later established its own exchange rate policies and did not join the European Union or adopt the euro.

In contrast, the CFA Franc and the Comorian Franc have strong historical ties to the former French Franc due to their colonial past. These currencies were created in 1945 by France for its African colonies and have maintained fixed exchange rates, first with the French franc and now with the euro. This arrangement includes a guarantee of convertibility by the French Treasury, with member states centralizing foreign exchange reserves. Despite shared names and historical links, each franc currency operates under distinct national or regional monetary authorities and economic conditions.