5 Francs (Belgian Independence) – Belgium

In 1880, Belgium's currency situation was defined by its membership in the Latin Monetary Union (LMU), a multinational agreement it had helped found in 1865. This union standardized coinage among member nations (including France, Italy, Switzerland, and later Greece) around a bimetallic system based on both gold and silver. Belgian francs were legally interchangeable with the francs of other member states, facilitating trade and travel. Consequently, Belgian coins in circulation were not exclusively domestic; French, Italian, and Swiss coins of equivalent value also circulated freely within the country, creating a de facto multinational monetary zone.

However, this system was under significant strain by 1880. The fixed mint ratio between gold and silver in the LMU treaty failed to reflect the shifting market values of the metals, particularly the steady depreciation of silver due to large new discoveries. This led to the phenomenon of "bad money driving out good," as people hoarded gold coins and used the cheaper silver for everyday transactions, causing a scarcity of gold in circulation. While the LMU had officially suspended the free minting of silver in 1878 to protect its gold reserves, the legacy of earlier over-minting meant Belgium was still grappling with an abundance of depreciating silver coinage in its economy.

Domestically, the National Bank of Belgium, founded in 1850, was the central issuing authority for banknotes. However, public trust in paper money remained limited, and coins dominated everyday commerce. The period was thus one of transition and vulnerability. Belgium was tied to an international system struggling with the collapse of bimetallism, facing internal challenges of currency management and maintaining stability while dependent on the monetary policies and economic health of its union partners. This precarious position would influence Belgium's economic policies for the next decade.