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The Luxembourg franc (''F'' or ISO ''LUF'', lb, Frang), subdivided into 100 centimes, was the
currency A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. A more general def ...
of
Luxembourg Luxembourg ( ; lb, Lëtzebuerg ; french: link=no, Luxembourg; german: link=no, Luxemburg), officially the Grand Duchy of Luxembourg, ; french: link=no, Grand-Duché de Luxembourg ; german: link=no, Großherzogtum Luxemburg is a small lan ...
between 1854 and 2002, except in 1941–44. In 1944–2002, its value was equal to that of the
Belgian franc The Belgian franc ( nl, Belgische frank, french: Franc belge, german: Belgischer Franken) was the currency of the Kingdom of Belgium from 1832 until 2002 when the Euro was introduced. It was subdivided into 100 subunits, each known as a in Dutch ...
. The franc remained in circulation until 2002, when it was replaced by the
euro The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...
. During the period 1999–2002, the franc was officially a subdivision of the euro (€1 = 40.3399F), but the euro did not circulate in physical form before 1 January 2002. Under the principle of "no obligation and no prohibition", financial transactions could be conducted in euros and francs, but physical payments could be made only in francs, as euro notes and coins were not available yet.


History

The conquest of most of western Europe by Revolutionary and
Napoleon Napoleon Bonaparte ; it, Napoleone Bonaparte, ; co, Napulione Buonaparte. (born Napoleone Buonaparte; 15 August 1769 – 5 May 1821), later known by his regnal name Napoleon I, was a French military commander and political leader who ...
ic
France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...
led to the French franc's wide circulation, including in
Luxembourg Luxembourg ( ; lb, Lëtzebuerg ; french: link=no, Luxembourg; german: link=no, Luxemburg), officially the Grand Duchy of Luxembourg, ; french: link=no, Grand-Duché de Luxembourg ; german: link=no, Großherzogtum Luxemburg is a small lan ...
. However, incorporation into the
Netherlands ) , anthem = ( en, "William of Nassau") , image_map = , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of the Netherlands , established_title = Before independence , established_date = Spanish Netherl ...
in 1815 resulted in the
Dutch guilder The guilder ( nl, gulden, ) or florin was the currency of the Netherlands from the 15th century until 2002, when it was replaced by the euro. The Dutch name ''gulden'' was a Middle Dutch adjective meaning "golden", and reflects the fact that, wh ...
becoming Luxembourg's currency. Following Belgium's independence from the Netherlands, the
Belgian franc The Belgian franc ( nl, Belgische frank, french: Franc belge, german: Belgischer Franken) was the currency of the Kingdom of Belgium from 1832 until 2002 when the Euro was introduced. It was subdivided into 100 subunits, each known as a in Dutch ...
was adopted in 1839 and circulated in Luxembourg until 1842 and again from 1848. Between 1842 and 1848, Luxembourg (as part of the
German German(s) may refer to: * Germany (of or related to) **Germania (historical use) * Germans, citizens of Germany, people of German ancestry, or native speakers of the German language ** For citizens of Germany, see also German nationality law **Ger ...
Zollverein The (), or German Customs Union, was a coalition of German states formed to manage tariffs and economic policies within their territories. Organized by the 1833 treaties, it formally started on 1 January 1834. However, its foundations had b ...
) used the
Prussia Prussia, , Old Prussian: ''Prūsa'' or ''Prūsija'' was a German state on the southeast coast of the Baltic Sea. It formed the German Empire under Prussian rule when it united the German states in 1871. It was ''de facto'' dissolved by an em ...
n
Thaler A thaler (; also taler, from german: Taler) is one of the large silver coins minted in the states and territories of the Holy Roman Empire and the Habsburg monarchy during the Early Modern period. A ''thaler'' size silver coin has a diameter of ...
. In 1854, Luxembourg began issuing its own franc, at par with the Belgian franc (BF/FB). The Luxembourg franc followed the Belgian franc into the
Latin Monetary Union The Latin Monetary Union (LMU) was a 19th-century system that unified several European currencies into a single currency that could be used in all member states when most national currencies were still made out of gold and silver. It was establish ...
in 1865. In 1926, Belgium withdrew from the Latin Monetary Union. However, the 1921 monetary union of Belgium and Luxembourg survived, forming the basis for the full Belgium-Luxembourg Economic Union in 1932. In 1935, the link between the Luxembourg and Belgian francs was revised, with 1F = BF. In May 1940, the franc was pegged to the
German Reichsmark The (; sign: ℛℳ; abbreviation: RM) was the currency of Germany from 1924 until 20 June 1948 in West Germany, where it was replaced with the , and until 23 June 1948 in East Germany, where it was replaced by the East German mark. The Reichs ...
at a rate of 4 francs = 1 Reichsmark. This was changed to 10F = 1 Reichsmark in July 1940. On 26 August 1940, the Reichsmark was declared legal tender in Luxembourg and on 20 January 1941, the Reichsmark was declared the ''only'' legal tender, and the franc was abolished. The Luxembourg franc was reestablished in 1944, once more tied to the Belgian franc at par. In August 1993, the
European Exchange Rate Mechanism The European Exchange Rate Mechanism (ERM II) is a system introduced by the European Economic Community on 1 January 1999 alongside the introduction of a single currency, the euro (replacing ERM 1 and the euro's predecessor, the ECU) as p ...
expanded its intervention margin to 15% to accommodate speculation against the French franc and other currencies. As a contingency measure against the pression this generated on European currencies, the Finance Minister,
Jean-Claude Juncker Jean-Claude Juncker (; born 9 December 1954) is a Luxembourgish politician who served as the 21st Prime Minister of Luxembourg from 1995 to 2013 and 12th President of the European Commission from 2014 to 2019. He also served as Finance Minister ...
, secretly had a new series of Luxembourg franc notes printed. The new currency which would not be pegged to the Belgian franc. As a security measure, the notes depicted
Grand Duchess Charlotte Charlotte (Charlotte Adelgonde Elisabeth Marie Wilhelmine; 23 January 1896 – 9 July 1985) reigned as List of monarchs of Luxembourg, Grand Duchess of Luxembourg from 14 January 1919 until her abdication on 12 November 1964. She acceded to th ...
, who had died in 1985. This was done to preserve the secret, as Juncker believed that nobody would believe that new banknotes would feature a former monarch. Besides for Junker, only
Grand Duke Jean Jean (Jean Benoît Guillaume Robert Antoine Louis Marie Adolphe Marc d'Aviano; 5 January 1921 – 23 April 2019) was the Grand Duke of Luxembourg from 1964 until his abdication in 2000. He was the first Grand Duke of Luxembourg of French agnatic ...
and Prime Minister
Jacques Santer Jacques Santer (born 18 May 1937) is a Luxembourg politician who served as the 9th President of the European Commission from 1995 to 1999. He served as Finance Minister of Luxembourg from 1979 until 1989, and the 20th Prime Minister of Luxembo ...
were aware of the scheme. The notes were never used, and were burned by the Army in 1999 on the day that the Euro was introduced. In 2019, Juncker, by then President of the European Commission, made the story public at a European Central Bank meeting. The Luxembourg franc was fixed at €1 = 40.3399F on 1 January 1999. Euro coins and banknotes were introduced on 1 January 2002. Old franc coins and notes lost their legal tender status on 28 February 2002.


Use of Belgian franc

Between 1944 and 2002, 1 Luxembourg franc was equal to 1 Belgian franc. Belgian francs were legal tender in Luxembourg, and Luxembourg francs were legal tender in Belgium. Nevertheless, payments in Luxembourg banknotes were commonly refused by shopkeepers in Belgium, either through ignorance or from fear that their other customers would refuse the banknotes (again, either through ignorance or from fear of being denied payment with it later), forcing them to go through the hassle of a trip to their bank to redeem the value of the banknote. With a few early exceptions, the coins were identical in size, shape, and composition. Although they had distinct designs, the coins circulated in both Luxembourg and Belgium.


Coins

The first coins were issued in 1854, in denominations of , 5 and 10 centimes. In 1901, the bronze 5- and 10-centime pieces were replaced by cupro-nickel coins. In 1915–1916, zinc 5-, 10- and 25-centime coins were issued by the occupying
German German(s) may refer to: * Germany (of or related to) **Germania (historical use) * Germans, citizens of Germany, people of German ancestry, or native speakers of the German language ** For citizens of Germany, see also German nationality law **Ger ...
forces. After the
First World War World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...
, iron coins were issued in the same denominations before
cupronickel Cupronickel or copper-nickel (CuNi) is an alloy of copper that contains nickel and strengthening elements, such as iron and manganese. The copper content typically varies from 60 to 90 percent. (Monel is a nickel-copper alloy that contains a minimu ...
was reintroduced in 1924, along with nickel 1- and 2-franc coins. The franc coins bore the inscription "Bon Pour", implying that they were tokens "good for" 1 or 2 francs. Such inscriptions also appeared on contemporary French and Belgian coins. In 1929, Luxembourg's first silver coins since the late 18th century were issued, 5 and 10 francs. Bronze 5, 10 (smaller than earlier issues) and 25 centimes and nickel 50 centimes were introduced in 1930. The last coins before
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
were cupronickel 25-centime and 1-franc pieces issued in 1938 and 1939. The first coins issued after the war were bronze 25-centime and cupro-nickel 1-franc coins introduced in 1946. These were followed by cupronickel 5-franc coins in 1949. In 1952, the size of the 1-franc (€0.02) coin was reduced to match that of the Belgian 1-franc coin introduced in 1950. From this time on, all new Luxembourg coins matched the sizes and compositions of their Belgian counterparts, although the 25-centime (€0.01) coin was not changed to match the Belgian counterpart introduced in 1964. In 1971, nickel 10-franc (€0.25) coins were introduced, followed by bronze 20-franc (€0.50) coins in 1980 and nickel 50-franc (€1.24) coins in 1987. The size and composition of the 1- and 5-franc coins were again altered in 1988 and 1986 respectively to match their Belgian counterparts. A combination of being a small population and with Belgian coins so abundantly circulating in Luxembourg meant it was seldom necessary for Luxembourg to issue coinage on a year by year basis, especially in later years during design changes when large numbers of coins were minted in Brussels to supply the small country for many years at a time. As a result, some dates appear in mint sets only while many other dates saw no standard issue coins minted at all. Many earlier dates changed frequently with larger denominations often being single year designs.


Banknotes

Before the
First World War World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...
, notes were issued by the International Bank in Luxembourg and the National Bank, denominated in
Thaler A thaler (; also taler, from german: Taler) is one of the large silver coins minted in the states and territories of the Holy Roman Empire and the Habsburg monarchy during the Early Modern period. A ''thaler'' size silver coin has a diameter of ...
,
Mark Mark may refer to: Currency * Bosnia and Herzegovina convertible mark, the currency of Bosnia and Herzegovina * East German mark, the currency of the German Democratic Republic * Estonian mark, the currency of Estonia between 1918 and 1927 * Fi ...
and, occasionally, francs, with an exchange rate of 1 franc = 80 Pfennig (the relative
gold standard A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold. The gold standard was the basis for the international monetary system from the 1870s to the early 1920s, and from the la ...
s would have implied a rate of 1 franc = 81 Pfennig) used on bi-currency notes. In 1914, State Treasury notes were issued. The first series was denominated in francs and Mark but these were the last Luxembourg notes to feature the German currency. Denominations were of 1, 2, 5, 25 and 125 francs (80 Pfennig, 1.6, 4, 20 and 100 Mark). In 1919, a second series of State Treasury notes was issued, with new denominations of 50 centimes and 500 francs. In 1923, the International Bank in Luxembourg issued the first of several types of 100-franc notes which continued until the 1980s. In 1932, the state introduced 50-franc notes, followed by 1000-franc notes in 1940. In 1944, following liberation, the franc was reintroduced with a new series of notes in denominations of 5, 10, 20, 50 and 100 francs. The 5-franc notes were replaced by coins in 1949, followed by the 10-franc notes in 1971, the 20-franc notes in 1980 and the 50-franc notes in 1987. In 1985, the Monetary Institute of Luxembourg took over paper money issuance from the government and issued the first post-war 1000-franc notes . These were followed by 100-franc notes in 1986 and 5000-franc notes in 1993.


See also

*
Economy of Luxembourg The economy of Luxembourg is largely dependent on the banking, steel, and industrial sectors. Luxembourgers enjoy the highest Lists of countries by GDP per capita, per capita gross domestic product in the world, according to an International Mon ...
* Luxembourgish euro coins


References


External links


Overview of franc of Luxembourg from the BBC




} {{Portal bar, Europe, Luxembourg, Money, Numismatics Currencies of Europe Currencies replaced by the euro Currencies of Luxembourg Modern obsolete currencies 1839 establishments in Europe 2001 disestablishments in Luxembourg