1 Franc – Afars and Issas

In 1969, the currency situation in the French Territory of the Afars and the Issas (TFAI) was a direct reflection of its colonial status and strategic importance. The territory, the future Djibouti, used the Djiboutian franc (DF), which was not an independent currency but a local issuance pegged at a fixed and absolute parity with the French franc (FF). This peg, established as 1 DF = 0.0122 FF (or 1 FF = 50 DF), was guaranteed by the French Treasury, ensuring stability and full convertibility. The currency was issued by a public institution, the Caisse Centrale de Coopération Économique, under French authority, with banknotes and coins physically distinct from those used in metropolitan France but identical in monetary value.

This arrangement provided significant monetary stability for the territory, insulating it from the inflationary pressures and devaluations affecting other regional currencies. It was crucial for Djibouti's primary economic function as a regional trade and logistics hub, centered around the port of Djibouti and the Addis Ababa-Djibouti railway. The fixed, French-guaranteed exchange rate fostered confidence among international merchants and shipping companies, facilitating the flow of goods and hard currency, particularly from landlocked Ethiopia.

However, this system also underscored the territory's complete economic dependence on France. There was no independent monetary policy; decisions made in Paris regarding the French franc directly governed the Djiboutian franc. Furthermore, while beneficial for commerce, the strong, stable currency did little to stimulate broader internal economic development or industrialization within the impoverished territory. Thus, in 1969, the currency was a symbol of both colonial control and the enclave's unique, service-oriented economy, remaining firmly within the Franc Zone's orbit a full decade after most other French African colonies had gained political independence.