Belgian franc


Belgian franc

Infobox Currency
currency_name_in_local = Belgische frank (Dutch) franc belge fr icon Belgischer Franken de icon
image_1 = 100 belgische franc.jpg
image_title_1 = 100 Belgian franc
image_2 = Belgio 5 franchi.jpg
image_title_2 = 5 Belgian franc
iso_code = BEF
using_countries = Belgium, Luxembourg
ERM_since = 13 March 1979
ERM_fixed_rate_since = 31 December 1998
euro_replace_non_cash = 1 January 1999
euro_replace_cash = 1 January 2002
ERM_fixed_rate = 40.3399 francs
subunit_ratio_1 = 1/100
subunit_name_1 = centiem (Dutch) centime fr icon Centime de icon
symbol = fr.
symbol_subunit_1 = c. c.
plural = frank (franken until c.1920) (Dutch) francs fr icon
plural_subunit_1 = centiemen (Dutch) centimes fr icon
frequently_used_coins = 1, 5, 20, 50 fr.
rarely_used_coins = 50 c.
frequently_used_banknotes = 100, 200, 500, 1000, 2000 fr.
rarely_used_banknotes = 10,000 fr.
issuing_authority = National Bank of Belgium
issuing_authority_website = www.nbb.be
obsolete_notice = Y
The franc (Dutch : "frank" - French : "franc" - German : "Franken") was the currency of Belgium until 2002 when the euro was introduced into circulation. It was subdivided into 100 centiem (Dutch), centimes (French) or Centime (German).

History

The conquest of most of western Europe by revolutionary and Napoleonic France led to the French franc's wide circulation. In the Austrian Netherlands (now Belgium), the franc replaced the kronenthaler. This was in turn replaced by the Dutch gulden when the Kingdom of the Netherlands was formed.

Following independence from the Kingdom of the Netherlands, the new Kingdom of Belgium in 1832 adopted its own franc, equivalent to the French franc, followed by Luxembourg in 1848 and Switzerland in 1850. Newly-unified Italy adopted the lira on a similar basis in 1862.

In 1865 France, Belgium, Switzerland and Italy created the Latin Monetary Union (to be joined by Greece in 1868): each would possess a national currency unit (franc, lira, drachma) worth 4.5 g of silver or 290.322 mg of fine gold, all freely exchangeable at a rate of 1:1. In the 1870s the gold value was made the fixed standard, a situation which was to continue until 1914.

In 1926, Belgium, as well as France, experienced depreciation and an abrupt collapse of confidence, leading to the introduction of a new gold currency for international transactions, the belga worth 5 francs, and the country's withdrawal from the monetary union, which ceased to exist at the end of the year. The belga was tied to the British pound at a rate of 35 belgas (175 francs) = 1 pound and was thus put on a gold standard of 1 belga = 209.211 mg fine gold. The 1921 monetary union of Belgium and Luxembourg survived, however, forming the basis for full economic union in 1932. In 1935, the Belgian franc was devalued by 28% to 150.632 mg fine gold and the link between the Luxembourg and Belgian francs was revised to 1 Luxembourgish franc = 1¼ Belgian francs.

Following Belgium's occupation by Germany in May, 1940, the franc was fixed at a value of 0.1 Reichsmark, reduced to 0.08 Reichsmark in July, 1940. Following liberation in 1944, the franc entered into the Bretton Woods system, with an initial exchange rate of 43.77 francs = US dollar set on October 5. This was changed to 43.8275 in 1946 and then to 50 following the devaluation of the British pound in September 1949. The Belgian franc was devaluated again in 1982.

Like 10 other European currencies, the Belgian/Luxembourgish franc ceased to exist in January 1, 1999, when it became fixed at 1 EUR= 40.3399 BEF/LUF, thus a franc was worth € 0.024789. Old franc coins and notes lost their legal tender status in February 28, 2002.

Linguistics

Initially, the currency was monolingual in French. However, Dutch language coins were introduced from 1869. Some later coins featured inscriptions in both languages. When the two languages appeared on either side of the same face of a coin, two versions were still produced, one with Dutch to the left and French to the right, and one with the alternate arrangement. Banknotes became bilingual in the 1880s and, from 1992, banknotes were introduced which were trilingual, with either French or Dutch on the obverse and German and the remaining language on the reverse. Some commemorative coins were issued with German inscriptions but none for circulation.

Use of Luxembourgish francs in Belgium

Between 1944 and 2002, 1 Luxembourgish franc was equal to 1 Belgian franc. Both francs were legal tender in the two countries. Nevertheless, payment with Luxembourgish banknotes were commonly denied by shopkeepers in Belgium, either by ignorance or by fear that their other customers would refuse the banknotes (again, either by ignorance or 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.

Coins

Between 1832 and 1834, copper 1, 2, 5 and 10 centimes, silver ¼, ½, 1, 2 and 5 francs, and gold 20 and 40 francs coins were introduced. Some of the early 1 and 2 centimes were struck over Dutch ½ and 1 cent coins. The 40 francs was not issued after 1841, whilst silver 2½ francs and gold 10 and 25 francs were issued between 1848 and 1850. Silver 20 centimes replaced the ¼ franc in 1852. In 1860, cupro-nickel 20 centimes were introduced, followed by cupro-nickel 5 and 10 centimes in 1861. The silver 5 francs was discontinued in 1876. Between 1901 and 1908, holed, cupro-nickel 5, 10 and 25 centimes coins were introduced.

In 1914, production of the 1 centime and all silver and gold coins ceased. Zinc 5, 10 and 25 centimes were introduced in the German occupied zone, followed by holed, zinc 50 centimes in 1918. Production of 2 centimes ended in 1919. In 1922 and 1923, nickel 50 centimes and 1 and 2 francs coins were introduced bearing the text "Good For" ("Bon pour" in French, "Goed Voor" in Dutch). Nickel-brass replaced cupro-nickel in the 5 and 10 centimes in 1930, followed by the 25 centimes in 1938. Nickel 5 and 20 francs were introduced in 1930 and 1931, respectively, followed by silver 20 francs in 1933 and 50 francs in 1939.

As a consequence of the German occupation in 1940, the silver coinage was discontinued. In 1941, zinc replaced all other metals in the 5, 10 and 25 centimes, 1 and 5 francs. In 1944 the Allies minted 25 million 2 franc coins at the Philadelphia Mint using leftover planchets for the 1943 steel cent. In 1948, cupro-nickel 5 francs and silver 50 and 100 francs were introduced, followed by silver 20 francs in 1949 and cupro-nickel 1 franc in 1950. Bronze 20 and 50 centimes followed in 1953 and 1952, respectively. The silver coinage ceased in 1955.

Cupro-nickel 25 centimes coins replaced the 20 centimes in 1964. Nickel 10 francs were introduced in 1969 (only struck until 1979), followed by bronze 20 francs in 1980 and nickel 50 francs in 1987. Aluminium-bronze replaced cupro-nickel in the 5 francs in 1986, whilst nickel-plated iron replaced cupro-nickel in the 1 franc in 1989.

ee also

* Belgian euro coins
* Euro gold and silver commemorative coins (Belgium)
* Belgium-Luxembourg Economic Union
* Economy of Belgium

External links

Standard numismatics external links
world_coin_gallery_1_url = Belgium
world_coin_gallery_1_name = Belgium
banknote_world_1_url = belgium
banknote_world_1_name = Belgium
dollarization_1_url =
dollarization_1_name =
gfd_1_url = Belgium
gfd_1_name = Belgium
gfd_data_1_url = 4003
gfd_data_1_name = Belgium Franc
show_gfd_excel = Y

* [http://news.bbc.co.uk/hi/english/static/in_depth/business/2001/euro_cash/spent_currencies/b_franc.stm Overview of Belgian franc from the BBC]


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