In 1949, France decided to peg the Djiboutian franc to the US dollar in order to restore monetary confidence. This decision, unprecedented in Africa, has provided the country with stability that has lasted for seventy-five years.
Invited to speak at the first African Gazettes Forum, Franco-Djiboutian lecturer, researcher and specialist in the monetary systems of the Horn of Africa Moustapha Aman looks back on this unique story - and did so at a time when the debate on the CFA franc is resurfacing in West Africa, particularly in the Sahel, he noted.
In 1949 the French Somali Coast, the future Republic of Djibouti, became the first African territory to leave the franc zone. After a series of devaluations and a traumatic reform in 1943 - which forced residents to exchange their banknotes at a discount of 50 to 90 - confidence in the French franc was shattered.