5 Francs – Grand Duchy of Luxembourg

In 1962, the Grand Duchy of Luxembourg operated within the framework of the Belgian-Luxembourg Economic Union (BLEU), established in 1922. This deep monetary and economic integration meant that the Luxembourgish franc was pegged at par to the Belgian franc, and both currencies were legal tender within the two countries. However, Luxembourg did issue its own distinct banknotes and coins, a symbolic assertion of its sovereignty, though the Belgian franc dominated in daily circulation and commercial transactions. The Luxembourgish franc's value and monetary policy were therefore intrinsically tied to decisions made in Brussels, with the Banque Nationale de Belgique acting as the central bank for the union.

The period was one of international monetary stability under the Bretton Woods system, which fixed currencies to the US dollar and indirectly to gold. For Luxembourg, this meant its franc, via its link to the Belgian franc, had a stable exchange rate against other major world currencies. This stability was crucial for Luxembourg's burgeoning economy, which was transitioning from its traditional steel industry base towards developing its financial services sector. The predictable currency environment provided a solid foundation for attracting international banks and investment.

Looking ahead, the currency situation of 1962 was on the cusp of significant change. Within a few years, the BLEU agreement would be renewed with modifications, and more profoundly, Luxembourg would become a founding and committed advocate for European economic integration. This path would ultimately lead it to the European Monetary System and, decades later, to adopting the euro, replacing the Luxembourgish franc entirely. Thus, 1962 represents a point of stable, yet externally dependent, monetary order before the grand duchy's deeper embedding into the European project.