Like any member country of the European Commonwealth, France also had its own currency before the emergence of a common European monetary system. The French franc was the official currency of France until the introduction of the euro in this European country, that is, until January 1, 1999. Together with the euro, it was in circulation until February 17, 2002.

History of the French franc

The history of the French franc, as the currency of France before the euro, is quite long. The franc was first introduced into circulation in 1360 by the French king Jean II the Good in honor of his release from English captivity, in which he fell after the battle of Poitiers in 1356. The first French coins weighed 3.87 grams.

This money was in circulation in France for almost 3 centuries until the French king Louis XIII in 1641 abolished these coins and introduced new "golden Louis" and "ecu" (French for "coat of arms"). Nevertheless, the people continued to use the word "franc" to name new coins.

Times of the French Revolution

V late XVIII century began in France Great Revolution. In 1795, at the National Convention, the franc was again officially restored and appointed the official coin of France.

In 1800, the Bank of France is created, and the official national currency of France demonstrates its stability. Since 1803, the French franc has been based not only on gold, but also on silver, while the value of the gold franc was 15 times greater than the value of silver coins. The stability of the gold franc was very high, throughout the 19th century and until the beginning of the 20th century it remained one of the most reliable currencies in Europe. Starting from 1808, the Bank of France began to issue not only coins, but also paper money notes.

Currency of France during the First and Second World Wars

The stability of the gold franc was undermined by the First and then the Second World Wars. The shortage of products during the war, as well as the restoration of the country, which was carried out at the expense of an unjustified large release of the money supply, led to inflation and a fall in the price of the French currency. Thus, the purchasing power of the French currency fell to 70% from 1915 to 1920 and to 43% from 1922 to 1926. The huge payments that Germany was obliged to make after the defeat in the war did not lead to the strengthening of the French economy.

In 1928 Raymond Puncaré wins the elections and becomes Prime Minister of France. Since this year, the Poincaré franc has been put into circulation, which had a value of 20% of the gold franc of the beginning of the 20th century. From 1928 to 1936, the French monetary system returns to the gold standard again, but the French currency continues to lose its value. Subsequent Second World War, during which most of France was occupied by Germany, and the post-war period only aggravated the situation to such an extent that in 1959 the franc was worth less than 2.5% of its value in 1936.

New franc and euro

In January 1960, due to the complete depreciation of old banknotes, a new French franc was created, the value of which was estimated at 100 old francs. All old monetary units continued to circulate, and the abbreviation NF appeared on the new francs. This measure contributed to the relative stabilization of the French national currency, which in the second half of the 20th century was characterized by the same slow inflation as most European countries. In 2002, when the country completely abandoned its currency and switched to the euro permanently, the new French franc was worth less than 12.5% ​​of its original value.

Many French people of a certain age group continued to calculate their monetary amounts in francs. During the introduction of the euro, there was a lot of speculation in the exchange of old and new monetary units for the European currency. Starting from January 1, 1999, the French currency was fixed: for 6.56 francs they gave 1 euro. To simplify the exchange of these currencies, they use the following formula: they add exactly half to the amount of francs available, and then divide the resulting number by 10, as a result they receive the equivalent amount in euros with an error of 1.6%.

Note that the introduction of the euro did not lead to the complete disappearance of the franc as the current currency. It survived in the French-controlled island territories of New Caledonia, French Polynesia and Wallis and Futuna. In these territories, the so-called Pacific franc operates, which has the following value relative to the euro: 1000 francs = 8.38 euros.

French coins

Knowing what currency was in France before the adoption of the euro, we will give a description of the coins of French francs, which have a very beautiful coinage. There were coins of 1, 5, 10 and 20 centimes, as well as 1/2, 1, 2, 5, 10, 20 and 100 francs. Until 1965, a 1/2 franc coin was not issued, but instead a banknote of 50 centimes was used. A coin of 10 francs began to be issued only in 1974. Since 1966, 5 centimes have also been produced with a new design and from a new metal (aluminum bronze). Until 1966, it was minted from stainless steel.

The design of almost all coins has an agricultural theme. On metal banknotes of various values, one can see images of ears of wheat and a girl doing sowing work. Only on coins of 10, 20 and 100 francs a different theme is shown. So, on 10 francs the Genius of Liberty is depicted, on 20 - Mount Saint-Michel, and on 100 - the Pantheon in Paris.

French banknotes

Before the advent of the euro, French banknotes with the following nominal values ​​were in circulation in France: 20, 50, 100, 200 and 500 francs. The 20 franc brown note depicts the famous French composer Claude Debussy, the blue 50 franc note depicts the French writer Antoine de Saint-Exupéry, the orange 100 franc note shows a portrait of the French artist Paul Cezanne, the red 200 franc note depicts the world-famous engineer Gustave Eiffel, and on the green bill of 500 francs you can see the scientists Marie and Pierre Curie.

		10 centimes 1997 France, (10 Centimes)
		20 centimes 1992 France, (20 centimes)

History of money France

France has its own currency, which is not of great importance, but it is official and national.

Frank, former currency unit France, which existed from 1641 to 1960, the coins had a denomination of one lire. This franc was introduced under the decimal system in 1795 and remained the national currency until the introduction of the euro in 1999.

King Jean in 1930 introduced the franc to everyone, the name of this monetary unit came from the inscription that concerned Jean, by the grace of God, the King of the Franks (Johannes Dei Gratia Francorum Rexand). Franks were later issued during the reigns of Charles V, Henry III and Henry IV.

In XIII, Louis stopped the production of the franc and already in 1641 he replaced the franc with the ecu and the louis, but the word franc continued to fully exist as a synonym for the Tourist livre. The French Revolutionary Convention, through violent action in 1795, established the national currency of France, which became the franc.

1 franc = 10 tithes = 100 centimes and is equal to almost five grams of silver.

Franc-germinal (by the name of the seventh month in the revolutionary calendar), appeared in 1803, and was a gold coin made of pure gold. Since that year, gold and silver coins have gained great popularity and were constantly in use, such coins were not changed and were not sold. The currency system lasted until 1864, when all silver coins, with the exception of the five francs, were changed from 90 percent to 83.5 percent without changing the total weight. The currency was retained during the restoration of the Bourbons.

In 1865, France became one of the founder countries of the Latin Monetary Union, and a common currency was formed, which was based on the franc-germinal, in addition, the name franc was already used in Belgium and Switzerland, and at this time other countries used their names for their currencies. The monetary union in 1873 established a gold standard of 1 franc = 9/31 grams of gold.

The wars were able to force France to completely abandon its gold standard, inflation went through the country, and there was a need to reconstruct the monetary unit. After a brief return to the gold standard, the currency began to lose value again, until in 1959 it was worth forty times less than it was in 1934. The franc became the companion currency of the German Reichsmark.

In the winter of 1960, the French franc itself was completely revalued into a new 100 francs.

Nevertheless, this did not mean the complete death of the old franc, one and two francs nevertheless continued their widespread use, at that difficult time inflation occurred, which quite significantly reduced the rate of the franc in relation to all other currencies. Over time, the old francs fell out of use and there was a moment of the euro, that is, the old money became no longer significant, after a complete revaluation of the franc, many Frenchmen continued to say "old francs" (anciens francs) to describe large amounts of money. This all happened before 2002, it was in this year that many got used to the fact that they had the introduction of euro banknotes.

On January 1, 1999, the new currency of modern France, that is, the euro, was fully adopted. That is, this particular currency has become a single currency, which is used by more than 320 million Europeans, and together with the territories of unofficial circulation - for 500 million people. The euro has replaced the European currency unit.

The currency itself, that is, the euro, is managed and administered by the European Central Bank, which is located in Frankfurt, and the European System of Central Banks, this system consists of the central banks of the member countries of the Eurozone.

Euro coins are issued in denominations of €2, €1, €0.50, €0.20, €0.10, €0.05, €0.02 and €0.01. Many shops in the Eurozone prefer to equalize prices so that they are multiples of 5 cents, and 1 and 2 cent coins were not needed.

But the franc banknotes have an absolutely common design, banknotes of € 500, € 200, € 100, € 50, € 20, € 10 and € 5 are issued. Some banknotes of higher denominations, such as € 500 and € 200, are not issued in some countries, but are legal tender everywhere.

Even though the euros have the same design, they still differ from each other, there is no brightness and catchiness, and all French money has an almost identical color and the same size.

Until the middle of the XIV century. France did not have its own monetary unit, the monetary system was based on the circulation of Roman gold coins - denarii, which is explained by the historical features of the formation of the French state. In ancient times, most of the modern territory of France was inhabited by the Celtic tribes of the Gauls. In the middle of the 1st c. BC. they were conquered by Julius Caesar, and the Romans called this country Gaul. With the fall of Rome, one of the strongest Germanic tribes - the Franks (i.e. free) conquered Gaul, and in the 5th century. AD its leader Clovis founded the state of the Franks, which from the 10th century. called France.

Gradually, the Roman coin goes out of circulation due to erasure and damage, in France they begin to mint a silver, and then a gold coin. After the unification of France by the Carolingians, Charlemagne carried out a monetary reform, which played a big role in the history of Europe, since counting monetary units appeared in circulation. The account of money for large sums was in livres (pounds), sous (solids) and deniers (denarii).

The basis was denier; 1 livre was equal to 20 sous, 1 sous - 12 denier. The Frankish kings, like the Roman ones, tried to centralize the coinage. Later, the royal coinage fell into decline, the specific kings switched to minting each of their own coins.

Franc- this is how gold coins began to be called, on which the image of the king and the Latin inscription FRANCORUM REX were minted - the king of the francs - as a monetary unit, it first appeared at the beginning of the Hundred Years War, in 1360.

During the era of the First Republic, the law of 28 Thermidor (August 15, 1795) made the franc the national currency. For most of the 19th century bimetallism existed in France. According to the law of 1803, gold and silver were subject to free coinage, and coins made from these metals had the force of legal tender. According to the law, the value ratio between silver and gold was 1:15.5.

The issue of paper money in France was organized by the Scot John Loy (1671 - 1729). In 1718, Low, having founded a bank in Paris, received permission from the French king to issue banknotes backed by silver. In a short time, the “Low system” stirred up the economic life of France, the state issued credit notes in almost unlimited quantities, withdrawing coins from precious metals. As a result, in 1720, the system collapsed, since it turned out that notes issued for 3 billion were firmly backed by only 50 million in gold and silver. The bank was declared bankrupt, and Low fled abroad.

Secondary paper money appeared only 70 years later. In 1790-1796. the French revolutionary authorities issued paper money - assignats (Latin assigno - I appoint). In 1790, the assignats depreciated and in 1796 were supplemented by other paper money - territorial mandates.

Since 1795, the franc has become the main monetary unit. However, too much money was printed and it quickly depreciated. In 1796 the printing presses were broken and the money burned. By 1798, all issued paper money had finally depreciated, and a legislative transition to hard currency was made.

In 1800, Napoleon Bonaparte created the Bank of France, which received in 1803 the exclusive right to issue money. In 1865, on the initiative of Napoleon III, the so-called Paris Convention was signed, uniting the monetary systems of France, Belgium, Switzerland and Italy. This association was called the Latin Union, which was joined in 1868 by the Vatican and Greece, and in 1877 by Finland. The union was created on the basis of the recognition of the French franc as the standard of value and minting by the participating countries of national silver coins of the same denomination and mass, based on bimetallism and adopted in

France, the ratio of the value of gold and silver is 1 to 15.5. The metal content of the monetary units of the countries of the Latin Union should have been the same and amounted to 0.29 g of pure gold and 4.5 g of pure silver. The gold and silver coins of the participating countries could freely circulate as legal tender on the territory of each state that was part of the union. In other words, the monetary units of the states retained their names, but had equal parity, i.e. 5 French francs equaled 5 Belgian francs, 5 Swiss francs, and so on.

The instability of the Latin Union is due to the excessive issue of paper money in Italy and France. After a sharp decline in the market value of silver, the participating countries suffered losses of gold due to the mandatory exchange of cheaper silver coins. The minting of silver coins was first limited and then stopped, which meant a transition (in 1873) to gold monometallism. Formally, the Latin Union lasted until 1926. The final reason for its collapse was the difference in the monetary policy of the participating countries during the First World War and in the post-war period.

At the beginning of the First World War, the French monetary system entered a period of gradual demonetization of gold. On August 5, 1914, a law was passed that abolished the exchange of banknotes of the Bank of France for gold and granted it the right to issue banknotes with a forced exchange rate. During the war, gold coins almost completely disappeared from the channels of monetary circulation and were replaced by fiat banknotes, the issue of which was used to finance state military spending and stimulated the development of inflationary processes.

The period of stabilization of the franc began in 1926, when the state budget was balanced with the help of additional taxes, which reduced the need for paper-credit emission. As a result of the deflationary policy, the money supply in 1926-1927. decreased somewhat, and in 1928 a monetary reform was carried out.

The essence of the reform was to carry out a hidden devaluation - banknotes were to be exchanged for gold in bullion at face value, but at the same time, the gold content of the franc was reduced by almost five times. The result of the monetary reform of 1928 in France was the introduction of a gold bullion standard, and the convertibility of banknotes into gold was curtailed: banknotes were subject to exchange for gold bullion only if they were presented in the amount of at least 215 thousand francs, which was equal to 12.5 kg of gold. Therefore, for small holders, banknotes were virtually inexchangeable. The gold bullion standard existed in France until 1936, which was due to the fact that the crisis of 1929-1933. embraced it later than other countries, since the monetary reform of 1928 stimulated the repatriation of capital from abroad and an increase in the gold reserves of the Bank of France.

Relying on the increased gold reserves, France led the so-called gold bloc, which included several other Western European countries (Belgium, Holland, Switzerland). In October 1936 alone, the government carried out three successive devaluations of the franc, while the exchange of banknotes for gold was discontinued.

In 1939, the franc zone was legally formalized, which included the French colonies. The Bank of France carried out general coordination of monetary policy within the boundaries of the franc zone, providing assistance to the countries that were part of it. After independence, many colonies withdrew from the franc zone.

The period of the Second World War is characterized by high rates of inflation, due to a significant increase in banknote emission, caused by the need to provide emergency loans to the government. In the post-war period, the devaluation of the franc was repeatedly carried out, caused both by external and internal factors which led to the need for monetary reform. At the beginning of 1960, the denomination of the franc was carried out. The new franc was equal to 100 old and received a gold content of 0.18 g of pure gold, the dollar rose in new francs.

In September 1969, the French government published a "recovery plan", which provided for a reduction in domestic consumption, a reduction in the budget deficit and an increase in exports. Credit restrictions were again applied (the discount rate of the Bank of France was raised in 1969 from 6 to 8%; banking and consumer loans), and taxes were raised to reduce the budget deficit. However, the devaluation of the franc in 1969 and subsequent measures did not eliminate the roots of inflation, and the rise in retail prices continued. Starting from this period, France entered the period of functioning of the paper-credit monetary system.

The modern monetary circulation of France has gone through two major stages in its development: the circulation of the franc until February 2002 and the subsequent transition to the single currency euro.

Until 2002, the sources of money emission in France were:

• Central Bank (Bank of France);
• banks and some credit and financial institutions that create conditions for the supply of money on the basis of term deposits and special accounts (savings deposits, cash bonds, savings accounts for housing construction, bonds of the national cash desk for agricultural credit);
• the Ministry of Finance, which, by lending to the economy, issues money;
• Deposit and safe cash desk, carrying out indirect emission of money.

The functions of the monetary authority are entrusted to the Bank of France, one of the oldest central banks in Europe. According to the law of December 2, 1945, the capital of the Bank of France was transferred to the state and to this day retains the status of the state. In accordance with the act of August 4, 1993, the Bank of France became independent for the first time in its history, which was one of the conditions for joining the euro area. The bank was entrusted with the responsibility for defining and implementing a single monetary policy to ensure price stability (inflation targeting) within the framework of the common monetary policy of the European System of Central Banks.

The structure of monetary circulation in France is divided into two main concepts: money supply and liquidity in the economy. The structure of the money supply is characterized by a decrease in the share of banknotes and small change, with an increase in demand deposits and a stable share of postal check accounts.

At the same time, there are three main channels for issuing money in France:

• bank lending to the national economy;
• bank lending to the state through banknotes issued under government bonds;
• issue of banknotes against the growth of official gold and foreign exchange reserves.

Before the transition to euro cash circulation, banknotes were in circulation in denominations of 20, 50, 100, 200 and 500 francs. As a non-cash turnover in France, check circulation, current accounts, and credit cards are widely used.

On January 1, 2002, the French franc was withdrawn from circulation and replaced by a single European currency - the euro. As a member of the European Economic Community since 1957, France has gradually moved towards this event, actively participating in all reforms. Thus, since July 1, 2002, the French franc is no longer legal tender in France, and the euro has taken its place.

Stages of development of the monetary system of France are presented in fig. 4.4.

Rice. 4.4. Significant stages in the development of the monetary system of France

French franc from 1795 to 2002 - the main monetary unit of France. Already on February 17, 2002, the French franc ceased to exist, as, and was completely replaced by the euro.
There are 10 desims or 100 centimes in one franc.

Origin of the franc

The name of the monetary unit, unlike a number of other currencies, did not come from a measure of weight. From the beginning of 1360, the French franc already existed as a currency. Your name gold coin"Frank" received, thanks to the main enemy of France at that time - England. In French, "franc" means "free". This name was given in honor of the release of King John II from captivity during the Hundred Years War. At the same time, the currency was useful for giving a ransom to the British.

There is a second version of the origin of the word "franc". Scientists have found its roots in the Latin phrase "FRANCORVM REX", meaning "king of the Franks". Such a phrase was often applied to coins even before the appearance of a monetary unit.

History of the franc

The history of the currency of France dates back to the 14th century:

1360- The first gold franc was minted. The main impetus for the issuance of new money was the release of John the Good from English captivity. The coin was called the horse franc. On the obverse was an image of a king with a sword. The weight of the coin was 3.885 grams. One franc was equal to the Turkish lira and 240 denier.

1365- the minting of a new coin began - the “pedestrian franc”, on the obverse of which the king was depicted standing in one place. The weight of the new coin was less and amounted to about 3.8 grams.

1461- the end of the reign of Louis XI, after which the era of new coins began - gold ecu.

1575- minted French franc from silver. The weight of the new coin was 14.188 grams. For one such coin, one could get 240 dinés, 20 soles or one livre.

1586- The release of the silver franc was discontinued, but some coins continued to be minted until 1642.

By the middle of the 17th century The silver franc went out of circulation and was replaced by the silver ecu.

1799 Napoleon's rise to power. Worked under his guidance. Annual revenues to the treasury from taxes amounted to almost 660 million francs.

1801– managed to reduce the budget deficit to a minimum level and cover part of the public debt.

1803- The first new francs were issued, which held their price until 1914. The size of the gold content was 0.2903 grams. Simultaneously with the new franc, the old louis were replaced, which were replaced by an updated coin - the louis.

1848- the financial crisis, as a result of which the so-called "forced exchange rate" was introduced. From that moment on, banking institutions could refuse to exchange banknotes for coins. At the same time, the free one was replaced by the legal one, when individuals and financial institutions undertook to take paper notes as a means of making payments.

1850- "legitimate" and "forced" courses were abolished.

1865- Created Latin. The initiator is France. It includes four states - Switzerland, Italy, Belgium and France. It was agreed that the currencies are brought to the so-called "bimetallic" standard. Since that year, the ratio of silver to gold has become 15.5 to one, that is, 0.29 grams of gold accounted for 4.5 grams of silver.

1868- Accession to the union of Greece and Spain.

1869- accession to the union of San Marino, Serbia, Bulgaria and a number of other states.

1870- the beginning of the war. Both courses ("legal" and "compulsory" are reintroduced).

1873- The cost of silver fell, so the issue of silver coins had to be abandoned. In fact, there was a smooth transition to the gold standard.

1885- Russian imperial (15 rubles) was equal to 40 francs, and semi-imperial (7.5 rubles) - to 20 francs.

1906- 100 francs coin was issued.

1914- the first banknotes for five, ten and twenty francs appeared, the exchange for coins was prohibited.

1920– The Latin Monetary Union collapsed, but on paper it ceased to exist seven years later, in 1927.

1928- the exchange of paper francs resumed again.

1929 the beginning of the financial crisis. The financial system based on the gold standard was destroyed.

1936- completely stopped the exchange for gold.

1939- A monetary union (area of ​​the franc) was formed.

1942- the beginning of the issue of new coins, having from five centimes to five francs.

1944- new banknotes in denominations from two to five hundred francs are in circulation. The exchange rate to the dollar is 50 francs.

1948- the beginning of the implementation of the Marshall Plan. In the same year there was a franc.

1950- new coins with a face value of up to 100 francs and a banknote of 10,000 francs were put into circulation. An agreement was reached on the continuation of the activities of the “franc zone”.

1958- the franc against the dollar reached 420. A decision was made to carry out a new devaluation.

1960- introduced a stable franc. Laos, Guinea, Syria, Lebanon, Cambodia and a number of other countries left the franc zone.

1962 Mali left the franc zone.

1963- the monetary unit began to bear the name franc (without the prefix "new").

1968- the flight of capital from the country led to a sharp decrease in gold and foreign exchange reserves.

1969 - devaluation of the franc, depreciation from 4.9 to 5.55 francs per dollar.

1970- The European Community put into circulation a new international currency ECU, which played the role of a means of payment in parallel with the franc.

1973- Madagascar and Mauritania left the "franc zone".

Since 1962, various French coins have been issued, many of which remained in circulation until the last days.

Also, since 1960, banknotes have been issued in denominations from 5 to 500 euros.

1999 The euro was introduced into circulation. The new currency went in parallel with the euro.

2002 The French franc is out of circulation. At the same time, the ecu was exchanged for the euro.

Switching from the franc to the euro: consequences

Until 4:30 p.m. on February 17, 2012, everyone could change French francs that were out of circulation for euros. On February 18, 2012, France went out of circulation. French francs have become interesting only to collectors.

Official exchange rate at the time of transition– 6.55957 francs for 1 euro:
- for 20 francs - 3.05 euros;
- for 50 francs - 7.62 euros;
- for 100 francs - 15.24 euros;
- for 200 francs - 30.49 euros;
- for 500 francs - 76.22 euros.

All French francs withdrawn from circulation were collected, crushed by a press and burned.

On the first day, the country's ATMs and banks dispensed hundreds of millions of euros in cash. But the enthusiasm of the French was quickly replaced by disappointment. Food prices have increased significantly compared to the level of December 31 last year. But it was only a small fly in the ointment.

Consequences of switching to the euro:

Established the work of the European Central Bank, which pursued a single policy for all EU countries. But the activities of the ECB have been repeatedly criticized. In particular, a number of countries were required to raise interest rates (Portugal, Spain and Ireland). France was among those countries that were forced to lower the rate. As a result, business growth rates have fallen. Subsequently, the adoption of the euro led to an increase in the unemployment rate;

- fixed policy changed. Now the budget deficits of each of the countries were clearly regulated by an agreement between the countries (the Stability and Growth Pact). The task of the participants is to maintain a low level of the budget deficit. For France, this was a blow, because the growth of the budget deficit could stimulate the economy. In turn, the financiers calculated that reducing the budget deficit to 1% of GDP leads to a decrease in economic growth by almost two percent;

- Increased investment in stocks, which had a positive impact on the work of French companies and the overall economic growth of the country;

- increased French exports and against the background of investors' interest in the European currency;

-growth of public debt to GDP continued after the transition to the euro. The introduction of a single currency only exacerbated the situation;

- increased active inflow of funds into the country's banking system, which contributed to the growth of consumer spending. Thus, the transition from the French franc to the euro in some way saved the country from the recession in the economy of 2002;

More than doubled, decreased.

Stay up to date with all important United Traders events - subscribe to our

From franc to louis d'or (1360-1640). The very first franc was a gold coin minted in France in 1360. On the front side of this coin was depicted the French king on horseback. The coin was minted from pure gold and weighed about 3.89 grams. This franc was equivalent to the Tourist livre, which consisted of 20 soles (sous) or 240 deniers. Although the introduction of the franc in 1360 was accompanied by an economic and political upsurge in France, it was produced in extremely small quantities during that period. But the coin remained in the memory of people, in the language and financial lexicon, which allowed the Convention, after several centuries, to make it the main monetary unit of the Republic without much effort.

Gold "equestrian" franc of Jean II the Good 1350-64

The gold franc ceased to be issued under Charles VI (1380-1422) and was replaced by the golden ecu. The resumption of the Hundred Years' War was accompanied by monetary turmoil, which escalated even more after the defeat at Agincourt in 1415. Four authorities simultaneously tried to influence the minting of French coins: the king of France, the king of England, the duke of Burgundy and the Dauphin (heir to the throne), who was hiding in Bourges.

Charles VII (1422-1461) wins the French throne with the help of Joan of Arc, this allows him to restore his power and monetary policy. In 1423, the king minted a new "horse franc" in an attempt to restore full-fledged coins. However, the franc is again supplanted by the golden ecu, and how the coin disappears for the next 150 years.

It wasn't until 1575 that Henry III (1574-1589) issued a silver franc, called the "white franc", with the intention of matching the face value of the coins to their actual metal content, similar to the time of Charles V (1364-1380). However, the royal declaration of 1586 forbids the minting of these francs due to the fact that a coin weighing 14 grams was often filed along the edge! The gold ecu, worth three livres, is now the main monetary unit of the kingdom. But besides the whole franc, there were also its change shares: coins of half and a quarter of a franc, which, however, were minted extremely irregularly and were practically not used under Henry IV (1589-1610). With the beginning of a deep monetary reform at the end of the reign of Louis XIII (1610-1643), who invented the louis d'or, the next issue of half and quarter franc coins was made only in 1641. These coins were superseded by the écu-based series and were no longer issued until the end of the 18th century.

Silver franc Henri III 1577

During the Age of Enlightenment, the louis-ecu-liar monetary system was established. At that time, various French and foreign coins were in circulation in France, so in 1640 Louis XIII decides to reform in order to streamline the monetary system. In connection with the influx of Spanish gold and the depreciation of old coins, the king begins minting a gold coin, to which he gives his name - liudor (from French this word literally translates as "Louis of gold"). As a result, the main silver coin of Louis was called the ecu. Beginning in 1656, this coinage was supplemented by a copper coin called the liar (3 denier). Copper double and single denier are no longer minted.

The monetary units of this system correlated with each other as follows:

3 denier = 1 liar
4 liara = 1 salt (su)
20 soles (sou) = 1 livre
6 livres = 1 ecu
4 ecu = 1 louis

This monetary system partially resembled the classical British system of "pounds-shillings-pence", which was reflected not only in the ratios, but also in the origin of the names of some monetary units from one Latin word. In Britain: 1 pound (in Latin libra) = 20 shillings (lat. solidus) = 240 pence (lat. denarius). Accordingly, in the French version: 1 livre = 20 sol = 240 denier.

In this state, this monetary system successfully existed until the Revolution.

Louis XV double louis d'or 1764, gold

Frank Germinal (1793-1914). At this stage, the decimal monetary system and the gold standard were introduced in France, and the franc, which actually replaced the livre, eventually served as a model and standard for the monetary units of many states.

Completely eliminated from the French monetary system for almost 150 years, the franc returns to the scene at the end of the 18th century, in the context of the economic crisis and political revolution. The French monetary system restored to its former place the two most stable coins since 1726: the golden louis and the silver ecu. But since 1783 the general situation in the kingdom and the indebtedness of the monarchy have become such that the vast majority of the coins did not reach the royal treasury at all. By 1789, with the help of the National Assembly, the Revolution had inherited the debts of the monarchy: about five billion livres plus interest set at a particularly high level.

In order to overcome the shortage of cash, the Convention chose paper as a money material: first as discount notes, and then in the form of banknotes, which were backed by national valuables confiscated from the church. But the denominations of banknotes were too large, and the problem of a shortage of small money remained. Since the reserves of precious metals were small, gold, silver utensils and other items made of these metals were required, which were required to be handed over for remelting.

First they asked for voluntary donations, then they resorted to the "patriotic tax". Army and navy provided copper. Church bells were also melted down. But the accumulation of metal was delayed, and new coins were still not minted. The Assembly decides to increase the issue of banknotes. Inflation has reached a point where prices expressed in coins and in paper banknotes began to differ. In 1793, the government tries to improve the situation by first forced borrowing, and then voluntary. Scarce metal was searched for and confiscated by the authorities to support the rate of banknotes; those who resisted were threatened with the guillotine. Terror was also carried out in the monetary and financial field until the fall of Robespierre.

Since 1795, the place of the livre in the monetary system of France has been occupied by the franc. And it was at this point that, in the interests of rationalization, the duodecimal monetary system (based on dozens) was abandoned in favor of the decimal system. Although the production of new coins from precious metals was delayed, the Convention in theoretical calculations predetermines the new coins of the Republic in terms of their gold and silver content as 9/10 parts of pure metal. The law of August 15, 1795 introduces the franc, consisting of 10 desims or 100 centimes, as the main monetary unit of the Republic, instead of coins bearing the name of the deposed king. For the franc, the content of pure gold (about 0.29 grams) and pure silver (4.5 grams) is set, very close to the gold and silver content of the livre in old coins. In fact, "franc" is the new name for the livre, introduced in connection with the overthrow of the old political regime and the transition to a decimal monetary system.

1 franc Napoleon I (1804-05), silver

In 1803 Consul Bonaparte called for a reform aimed at overcoming the anarchy in the circulation of money, formed from ecu, louis and revolutionary coins of various metals. The Acts of Germinal (period 21/22 March - 19/20 April according to the new "republican" calendar) of 1803 confirmed a new monetary system based on the decimal franc, named "franc germinal" in honor of that same month. To replace the old royal coins still in circulation, gold coins of 20 francs (the famous "napoleondor" weighing about 6.45 grams 900/1000 fineness) and 40 francs (double "napoleondor") were issued, as well as silver coins of 5 francs, 2 francs and 1 franc. 500 million gold and about 900 million silver coins were minted. This was partly facilitated by a considerable influx of silver from Italy after the military campaigns of Napoleon. However, this was not enough. Paper money had to be reintroduced, and its issue was entrusted to the Bank of France, created not so long ago with a permanent metal reserve to maintain the exchange rate of banknotes. In this context, the new gold-backed paper money was better accepted and gradually gained recognition and distribution. Franck Germinal proved to be effective. It remained very stable despite the reshuffling of political regimes and lasted until the First World War.

5 francs Napoleon III 1852, silver

By 1850, large gold reserves were discovered in California and Australia. Gold reserves remained impressive and stable, but the bimetallic system of the germinal was broken. In a number of countries, the fineness of silver coins was lowered from 900/1000 to 835/1000, which entailed the export of French coins with an unchanged fineness abroad. Thanks to the World Exhibition of 1865, France organized a currency conference that brought together Belgium, Italy, Switzerland and Greece. At a meeting in Paris on December 23, the Latin Monetary Union, the first international monetary organization, was born. Its main goal was to establish a homogeneous currency for the participating states. For gold coins of 100, 50, 20, 10 and 5 francs, the fineness of the metal was 900/1000, for silver coins of 5 francs - 900/1000, and for silver coins of all smaller denominations - 835/1000. The amount of coinage was set at a level proportional to the population of each country.

100 francs 1885, gold

In 1867, Napoleon III convened a new currency conference, this time bringing together 20 states. According to the principle of the gold standard, a gold coin was chosen as the main one. In accordance with the Vienna agreement of 1868, the franc was chosen as the unit of international payments: the germinal franc became the single coin for a large part of Europe!

Thus, to late XIX century, in addition to France itself, many European states, including Belgium, Italy, Switzerland, Liechtenstein, the Vatican, Greece, Monaco, Luxembourg, Spain, Romania, Albania, Finland, Serbia, Montenegro, Bulgaria, etc., as well as Venezuela in South America, had a monetary system based on the weight standard of the French franc, although in many of these states they themselves coins bore their local names. Frank also had the widest influence and circulated in a number of other states, including primarily the French and Belgian colonies in Africa. This influence did not bypass Russia, which had large debts to France: since 1886, Russian gold coins have been minted, as in the countries of the Latin Monetary Union, from gold 900/1000 (instead of 917/1000) and their weight is brought into line with allied coins. A five-ruble Russian gold coin of 1886-96 (and since 1897 - a 7.5-ruble coin) exactly corresponds in terms of gold content to the "Napoleondor" (20 francs). Thus, from 1886 to 1896, one franc corresponds to exactly 25 Russian gold kopecks, and since 1897, after the devaluation of the Russian gold ruble by one and a half times, to 37.5 gold kopecks. Clear evidence of the French influence on the Russian monetary system is the "gift" coin with a double denomination of 37.5 rubles / 100 francs of 1902, which was originally conceived as a mass-issue coin for international settlements, but for some reason was minted only in very limited quantities and in practice, it was used by the Russian Emperor Nicholas II as a souvenir.

Russia. 37 rubles 50 kopecks/100 francs 1902, gold

Frank Poincaré (1914-1959). This period in the history of the French franc is characterized by the abandonment of the gold standard, the disappearance of first gold and then silver coins from circulation, multiple and significant devaluations, high inflation and the complete collapse of the Latin Monetary Union by 1927. Since about the middle of the 19th century, the franc has been the common standard currency for a number of European countries. He overcame six political regimes, the War of 1870 and the Paris Commune without interference. But the First and then the Second World Wars, combined with the Great Depression of the early 1930s, greatly undermined the French economy and led to the collapse of the entire French monetary model based on the Germinal franc.

From 1911, after the Anglo-German crisis in Agadir, conflict with Germany seemed inevitable. Both sides are actively preparing both militarily and financially. With very precise instructions, the Bank of France at the beginning of the First World War achieves support for the franc. However, the printing of new paper money was soon required, which caused inflation and their depreciation. Instead of raising taxes (the population has already been mobilized for the most part), the government relies on domestic state loans, as well as on British and American loans. It is estimated that the First World War cost France about $200 billion, 80% of which was financed by borrowed money, based on the belief that after their defeat in the war, the Germans would "pay the bills." But the economic collapse of the Weimar Republic and the complete collapse of the mark (1922-1923) put an end to the last French illusion. In fear of political and social repercussions for Europe, Britain and the United States are supporting the recovery of the German economy. They did not approve of the French occupation of the Ruhr area and ordered France to revise downward its claims against Germany without writing off the debts of France itself.

Since 1919, England and the United States suspended the provision of loans to France and demanded repayment of loans taken earlier. Financial markets reacted immediately: the franc collapsed in London and became the object of all speculation. The election victory of the united "left" in May 1924 hastened its downfall: speculation doubled in response to taxes on capital; investors lose confidence - they are worried about rumors about the possible danger of an international conspiracy. The state is in danger of bankruptcy. In 1928, the Parliament returns Raymond Poincaré to power. The announcement of its return stabilized the franc for a while. If a miracle does not happen, "Poincaré-Confidence" is the right person to get out of this situation. He consistently uses devaluations, taking into account the costs. On June 25, Poincare confirms the death of the franc germinal, a monetary unit that had retained in France by that time only a fifth of its original gold content, i.e. devaluation of the franc by 80%. Now this paper "franc for 4 sous" (in mass consciousness people, the franc was still worth 20 sous) could only be exchanged for gold bars (and not for coins, as before) and moreover, in the amount of at least 215,000 francs, which now corresponded to 12 kilograms of gold.

With the outbreak of the First World War, the actual collapse of the Latin Monetary Union immediately began, although it officially ceased to exist in the second half of the 1920s. Now the currencies of its former members are no longer tied to the French currency. Since that time, they have depreciated and devalued each in its own way. The Swiss franc turned out to be the most stable and least devalued currency among the countries participating in the Latin Monetary Union (as well as among all the currencies of the world) according to the results of the entire 20th century. Switzerland, which suffered relatively little from the two world wars and was one of the last in the world to abandon the gold standard in the 1930s, is now, together with Liechtenstein, the only region in the world where the actual "franc germinal" is still preserved, not undergoing denominations or monetary reforms, as happened during the 20th century with the currencies of most of the other participants in this union due to their strong depreciation.

2 francs 1943 aluminum

In France, as in almost all other countries of the former monetary union, it was not possible to achieve a stable stabilization of the currency for a long time. The Great Depression of the 1930s leads to the worldwide collapse of the gold standard and the devaluation of the pound sterling, the dollar and the yen against gold. A deep recession in France is showing signs of deflation. The franc was again overvalued against other currencies, French exports fell into decline. In this connection, over time, the French franc devalues ​​again, like a number of currencies of other countries: between 1936 and 1940, it lost another 2/3 of its value.

5 francs 1949, aluminum

With the defeat of France in 1940, Germany introduces an exorbitant forced exchange rate (1 Reichsmark becomes equal to 20 francs), which allows the invaders to plunder the country. In addition, the government must pay 400 million francs daily to cover the costs of the occupation. In the so-called "overseas territories" of France, the "free franc" exists parallel to the "Vichy franc" in the territory of France itself occupied by the Germans, which is "nothing more than a paper of a certain value for a certain use," in the words of Marshal Göring.

100 francs 1936, gold

The provisional government introduces loans to curb the inflation caused by the years of the war and the German occupation. General de Gaulle refused to pursue a strict policy, as advised by Pierre Mendès-France. Thus, inflation rises, and the franc continues to depreciate throughout the entire IV Republic, destroyed by the war of independence. Since December 1945, France has maintained a new international monetary system. Defined by the parties to the Bretton Woods Treaty (July 22, 1944), the International Monetary System is still based on the official "gold content" of the dollar (1/35 ounce since the end of 1933) and other currencies. The official dollar exchange rate was 50 French francs in 1944 and ... 420 francs in 1958! After that, the franc falls under the care of the International Monetary Fund. But a large-scale monetary reform is still needed, and this will be the "new" denominated franc of 1960.

Despite the rather sad fate of the French franc and the Latin Monetary Union in this period, the influence and popularity of the franc in the former French colonies still remains. So, in the mid-1940s, a number of poor states in central and western Africa introduce their own currency (also called the franc), pegging its rate first to the French currency and then to the euro. And since these states did not follow the example of France, which held a denomination in 1960, it is quite possible to say that this region of the world still uses the “Poincaré franc”.

New franc (1960 - 2001). The abuse of numerous devaluations and the significant depreciation of the French franc over decades led in the late 1950s to the idea of ​​a denomination. As a result, on January 1, 1960, the so-called "de Gaulle franc", or new franc, appears.

20 ("new") centimes 1963, aluminum bronze

De Gaulle carried out a major monetary reform - returning to power in 1958, he first decided to carry out a new devaluation (by 17.55%) and then announced the creation of a "heavy franc", which he entrusted to his finance minister Antoine Pinay and economist Jacques Roueff. The "new franc" was put into circulation eighteen months later: it costs 100 old francs. The depicted sower with a Phrygian cap on her head on many new coins resembles the franc, which was in circulation until 1914. De Gaulle wanted the new franc, which finally became official in 1963, to become a symbol of stability and power.

1 ("new") franc 1975, nickel

This period in the history of the franc is characterized by sufficient stability in the purchasing power of the French currency and, in general, moderate (compared to the previous period) inflation. Since the 1970s, as a result of the annulment of the Bretton Woods agreements of 1944, there has been a abandonment of the official exchange rate of the franc, based on its "gold content", in favor of a freely floating market rate against other world currencies. However, over time, the monetary and monetary policy of France was subjected to more and more restrictions within the framework of European integration, which ended in the late 1990s with a tight peg of the franc to the ECU (euro) and the complete loss of independence by the Bank of France in matters of monetary policy, and also the subsequent complete abandonment of the franc in 2002.

10 ("new") francs 1995, bimetal

End of the franc (2002 -). According to the results of the European Conference in The Hague in 1969 and Werner's plan (1971), a course was taken towards the convergence of the economic systems of the EEC (European Economic Commission) member countries in order to create a single European currency. The ECU, or European Currency Unit (ECU, European Currency Unit), has become a common "virtual" currency for non-cash payments in a number of European countries. It is a settlement synthetic monetary unit, created in 1976, taking into account the size, "specific weight" and the importance of the economy and the characteristics of the monetary system of each of the participating countries. It is this ECU currency, later renamed the euro for political and linguistic reasons, that will finally replace the franc in 2002, which had existed unchanged for more than forty years.

The European Monetary System (EMS) is designed to mitigate and limit fluctuations in the exchange rates of member states and not upset the balance of trade within the EEC. Over time, each of the currencies of the participating countries began to have only limited fluctuations relative to the rate of the single European currency. Thus, since the late 1980s, the franc could fluctuate only 4.5% against the ECU: 2.25% up or down.

Adopted on December 10, 1991 and ratified by a referendum in France on September 20, 1992, the Maastricht Treaty provided for the subsequent rejection of their own national currencies and their monetary policy by the countries participating in the agreement and a complete transition to a common European monetary unit, including also cash circulation. The Maastricht Treaty establishes the mandatory criteria for the participating countries necessary for the existence of a truly single currency. To manage and regulate the system in 1994, the European Monetary Fund was created, which replaced the European Monetary Institute, into whose reserves the central banks of the member countries transfer 20% of their dollar and gold assets, receiving in return assets denominated in ECU. The European Monetary Fund gets the opportunity to create a European Central Bank.

The name of the single European currency caused a lot of discussion. Some countries feared a negative psychological effect on the part of the population when abandoning their national currencies, and some did not accept the name "ECU" due to phonetics and language policy. At the end of 1995, an agreement was concluded on terms that were considered the most neutral and adapted to different languages most of the nations of Europe. Under this agreement, it was decided to rename the ECU to the "euro" from January 1, 1999 - the date on which the opening of the European Central Bank was scheduled.

Commemorative coin " Last year franc" with a face value of 655.957 francs (100 euros) 2001, gold

Simultaneously with the establishment of the European Central Bank (ECB), the franc virtually disappeared as an official currency: from January 1, 1999, it becomes nothing more than a bargaining chip for France under the single European currency ECU, which is now officially called the "euro" (euro). The final value of the euro was fixed on 31 December 1998 at 6.55957 French francs per euro. But cash denominated in euros was put into circulation only on January 1, 2002. And the euro became the only currency in circulation only after the transition period, which lasted until February 17, 2002.

50 (euro-) cents 1999, brass

Currently in circulation are coins of 2 and 1 euros, 50, 20, 10, 5, 2 and 1 (euro-) cents - these are euro change coins created after the EU summit in Verona. One side of the coin is common to all countries of the euro area (value on the reverse); the other side of the coins has a "national" image, necessarily including twelve stars - a symbol of united Europe. The architectural monuments of Europe make banknotes of 500, 200, 100, 50, 20, 10 and 5 euros in existing colors and sizes clearly distinguishable.

2 euro 1999, bimetal

Thus ended the long history of the French franc, which was once one of the most widespread coins in the world and had a huge impact on the monetary systems and economies of many countries, including Russia. A new money adventure has begun!