50 Francs – Afars and Issas

In 1970, the currency situation in the French Territory of the Afars and the Issas (TFAI) was a direct reflection of its colonial status and strategic position. The territory, which would become the independent nation of Djibouti in 1977, did not have its own independent currency. Instead, it operated within the monetary framework of France, using the CFA franc as its sole legal tender. This currency was issued by a common central bank for the region, the Banque Centrale des États de l'Afrique de l'Ouest (BCEAO), and was pegged at a fixed and guaranteed rate to the French franc (FF 1 = CFAF 50).

This arrangement provided significant monetary stability for the territory, which was a key objective for its primary economic asset: the port of Djibouti. As a major commercial and refueling hub for the Red Sea and Suez Canal route, the territory relied on international trade and shipping. The fixed, convertible CFA franc facilitated this commerce by eliminating exchange rate risk with France and its other African partners, ensuring predictable transactions for the shipping companies, merchants, and the critical French military base located there.

However, this currency system also underscored the territory's economic dependence and limited autonomy. Monetary policy was entirely controlled from outside, dictated by the BCEAO's board in Dakar and ultimately guaranteed by the French Treasury. While this brought stability, it also meant the local administration had no direct lever to manage its economy through currency valuation or independent issuance. The currency situation in 1970 was thus a double-edged sword: a tool for commercial stability in a strategic location, yet a clear symbol of its impending need to navigate a path toward financial sovereignty upon the independence that was already being actively debated.