25 Centimes – Grand Duchy of Luxembourg
Luxembourg
Context
Year: 1938
Country: Luxembourg 
Issuer: Grand Duchy of Luxembourg
Ruler: Charlotte
Currency:
(1854—2001)
Demonetization: 1 January 1953
Total mintage: 2,001,400
Material
References
KM: #Click to copy to clipboard42a
Numista: #2261
Value
Exchange value: 0.25 LUF
Obverse
Description:
Shield with a forked-tail Luxembourg lion, crowned and on a ten-piece field, encircled by the country's name between stars and an outer girdle.
Inscription:
* LUXEMBOURG *
Script: Latin
Engraver: Alexandre Everaerts
Reverse
Description:
Face value and mint year
in three lines, flanked by
an oak branch. Engraver's name
in exergue.
in three lines, flanked by
an oak branch. Engraver's name
in exergue.
Inscription:
25
CMES
1938
EVERAERTS
CMES
1938
EVERAERTS
Script: Latin
Engraver: Alexandre Everaerts
Edge
Plain
Categories
| Symbols> Coat of Arms |
Mints
| Name | Mark |
|---|---|
| Royal Mint of Belgium | — |
Mintings
| Year | Mint Mark | Mintage | Quality | Collection |
|---|---|---|---|---|
| 1938 | — | 2,001,400 |
Historical background
In 1938, the Grand Duchy of Luxembourg operated within the framework of the Belgium-Luxembourg Economic Union (BLEU), established in 1922. This union created a fixed exchange rate parity, where the Luxembourgish franc was legally equivalent to and freely interchangeable with the Belgian franc. Consequently, Luxembourg did not have a fully independent monetary policy; its currency circulation was largely managed in tandem with Belgium, with Belgian banknotes also being legal tender within the Grand Duchy. This system provided economic stability and facilitated seamless cross-border trade with its most important economic partner.
The period leading up to 1938 was one of global economic uncertainty following the Great Depression. Luxembourg's economy, heavily reliant on steel exports, was vulnerable to international market fluctuations. While the BLEU arrangement offered stability, it also meant Luxembourg's currency was indirectly affected by Belgium's monetary decisions and its own economic challenges. Domestically, Luxembourg issued its own franc coins and, notably, a series of franc banknotes through the Luxembourg Monetary Institute (Institut Monétaire Luxembourgeois), founded in 1935 to oversee the issuance of distinct Luxembourgish currency within the union.
Politically and economically, 1938 was a tense and pivotal year on the eve of World War II. The currency system, while robust in peacetime economic union, faced an existential threat from looming German expansionism. The stability of the Luxembourg franc was therefore underpinned not only by its link to Belgium but also by the fragile geopolitical situation in Europe. Within a few years, this arrangement would be violently disrupted by the German invasion in May 1940, which led to the immediate abolition of the Luxembourg franc and its forced replacement with the German Reichsmark.
The period leading up to 1938 was one of global economic uncertainty following the Great Depression. Luxembourg's economy, heavily reliant on steel exports, was vulnerable to international market fluctuations. While the BLEU arrangement offered stability, it also meant Luxembourg's currency was indirectly affected by Belgium's monetary decisions and its own economic challenges. Domestically, Luxembourg issued its own franc coins and, notably, a series of franc banknotes through the Luxembourg Monetary Institute (Institut Monétaire Luxembourgeois), founded in 1935 to oversee the issuance of distinct Luxembourgish currency within the union.
Politically and economically, 1938 was a tense and pivotal year on the eve of World War II. The currency system, while robust in peacetime economic union, faced an existential threat from looming German expansionism. The stability of the Luxembourg franc was therefore underpinned not only by its link to Belgium but also by the fragile geopolitical situation in Europe. Within a few years, this arrangement would be violently disrupted by the German invasion in May 1940, which led to the immediate abolition of the Luxembourg franc and its forced replacement with the German Reichsmark.
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