DJF - Djiboutian Franc

History of The Djiboutian Franc (DJF)

In 1884, the French protectorate of Somaliland was established, and the French franc was used in daily transactions alongside the Indian rupee and the Maria Theresa thaler, with specific exchange rates of 2 francs = 1 rupee and 4.2 francs = 1 Maria Theresa thaler.

Since 1908, the franc has been circulated in Djibouti at a fixed legal exchange rate with the French franc. From 1910, banknotes were issued by the Indochina Bank for the colonies. Paper money and coins were issued from 1919 to 1922.

In 1948, a separate currency for Djibouti was issued under the name "Côte Française des Somalis." In 1949, the independent Djibouti franc was officially introduced, pegged to the US dollar at an exchange rate of 214.392 francs = 1 dollar. The Djiboutian currency appreciated against the French franc, and the economy of the Republic of Djibouti was not affected by the subsequent devaluation of the French franc.

In 1952, paper money was produced. In 1971 and 1973, the franc was revalued to be pegged to the US dollar, with the first exchange rate being 1 US dollar = 197.466 francs. Then the exchange rate was 1 US dollar = 177.721 francs. In 1977, coins and banknotes were redesigned after gaining independence.

The Djiboutian Franc still plays an extremely important role in the economy today, thanks to the country's seaport and its significant contribution to GDP from international trade activities.

Denominations of the Djiboutian Franc (DJF)

Currently, the denominations of the Djiboutian Franc are in circulation in both banknotes and coins as follows:

• Coins: 1 DJF, 2 DJF, 5 DJF, 10 DJF, 20 DJF, 50 DJF, 100 DJF, 250 DJF, 500 DJF.

• Banknotes: 1,000 DJF, 2,000 DJF, 5,000 DJF, 10,000 DJF.

Djiboutian Franc coins

• From 1920 to 1922: coins made of zinc, aluminum, and brass with denominations of 5, 10, 25, and 50 centimes and 1 franc. The shape of the coins includes circular, hexagonal, and octagonal.

• In 1948, 1, 2, and 5 franc aluminum coins were introduced.

• In 1952, the 20 franc aluminum coin was introduced.

• In 1965, the 10 franc coin was introduced

• In 1970, the 50 and 100 franc coins made of nickel were introduced

• In 1989, the 500 franc coin made of aluminum-bronze was produced

• Since 201, the 250 franc coins have been put into circulation.

Djiboutian Franc bank notes

• From 1910 to 1915: banknotes were issued with denominations of 5, 20, and 100 francs

• In 1927 and 1938: Banknotes of 500 and 1000 francs were issued

• In 1946: The 10 franc coin was issued

• In 1952: Production of the 5, 10, and 20 franc notes was discontinued and the 5000 franc note was introduced

• In 1970, the 50 and 100 franc banknotes were replaced with coins.

• In 1977, the National Bank of Djibouti took over the production of currency.

• In 1984, the 10,000 franc notes were put into circulation.

• In 1989, the 500 franc banknote was replaced with a coin.

Exchange Rate of the Djiboutian Franc (DJF)

The Djiboutian Franc is currently pegged to the US dollar at a fixed exchange rate since the 1970s. This helps the Djiboutian Franc avoid strong fluctuations from the international currency market and stabilizes the economy, especially in the context of this country having few natural resources and primarily relying on international trade.

History of the Djiboutian Franc exchange rate

• Before 1949: the French Franc was used

• In 1949, the Djiboutian Franc was issued and pegged to the value of the USD at an exchange rate of 1 USD = 214.392 DJF.

• Early 1970s: The exchange rate was adjusted to 1 USD = 177.721 DJF, and this rate has been maintained steadily until now.

To find out the current exchange rate for 1 Djiboutian Franc, you can use Gocuco's currency converter tool to track the real-time exchange rate accurately.

Economic Indicators Influencing the Exchange Rate of Djibouti Franc

Inflation rates serve as a primary determinant, as fluctuations in the cost of living directly impact purchasing power, subsequently altering demand for the currency. When inflation is high, the real value of the Djibouti Franc declines, leading to depreciation against major currencies. Similarly, the balance of trade presents critical insights; a trade deficit, where imports exceed exports, exerts downward pressure on the national currency. This scenario often results in an increased supply of Francs in the market, driving down its value. Furthermore, foreign direct investment (FDI) plays a pivotal role in stabilizing and enhancing the currency's value. Substantial FDI inflows signal investor confidence in Djibouti’s economic prospects, bolstering demand for the Franc. Collectively, these economic indicators underscore the intricate and interconnected factors influencing the exchange rate of the Djibouti Franc, necessitating a nuanced understanding for effective monetary policy formulation.