Historical Sketch

The Spanish navigator Vicente Yáñez de Pinzón was the first European to arrive at the Guyana coastline. The first French settlement dates to the foundation of Cayenne in 1643, a colonial administration was set up in 1674. The name French Guiana became common for the former Cayenne Colony in the 1820s. In 1946, colonial status was abolished, and Guiana was transformed into a French overseas department, since 2015 it is organized as so-called "single territorial collectivity".

In the mid-19th century, France tried to extend its possession into north-western Brazil, where the borders had never been clarified. As no agreement was reached, French adventurers instigated a secession of the disputed territory under the name "Republic of Independent Guiana" (or "Republic of Counani" after its capital) in 1886. The secession did not get official French support and collapsed in 1891, when the border dispute between Brazil and France could finally be settled. Two more secessions were attempted by French nationals in the early 20th century.

Monetary History Overview

When the French colonization of the Caribbean began in the 17th century, French accounting was applied in all possessions in America, and French coins were current. The scarcity of specie quickly led to an overvaluation, and as a consequence, the 1672 currency law created the French Colonial Livre as a distinct unit of account at 75% of the metropolitan French Livre (of Tours). In 1726, the ratio was lowered to 67%. The scarcity, even absence, of French coinage led to a dominance of the Spanish Dollar and other trade coins that flew in from the Spanish possessions. Commodities like timber (Guiana) or rum, as well as money substitutes made of paper, even playing cards, were also accepted in payment transactions. Occasional subsidiary coins were issued for several colonies. During the British-French war in the Caribbean, the Colonial Livre began to diverge in the three main possessions, such that in Guadeloupe and Martinique its value was one sixth lower than in Guiana (and the valuation on the two islands was also slightly different).

In 1820, Guiana abolished the Colonial Livre and changed to the Franc accounting, nearly 30 years after the metropolitan currency reform. A few local subsidiary coins were produced, otherwise there was no change to the monetary situation. In 1851, the Bank of Guiana was founded to subsidise local settlers after the abolition of slavery. In 1874, it became a full colonial bank and obtained the privilege to issue paper money. The Guianan Franc was identical to the metropolitan one, convertibility was, however, restricted. After mainland France had been occupied by Germany in 1940, the Caribbean possessions remained under control of the exiled government in Brazzaville (Congo). It decided to change the colonial monetary order. In 1942, the Central Bank of Overseas France (originally "of Free France") began operations and took over the issuing privilege from the Bank of Guiana. This remained so after the French liberation and the transformation of the colony into an overseas department in 1946.

In December 1958, metropolitan France carried out a currency reform. In the Caribbean, first a common issuing institute for all territories began operations in 1959. The currency switchover was done in January 1963. Like in mainland France, two zeros were cut, and the Caribbean (New) Franc got introduced with identical banknotes being used in Guiana, Guadeloupe and Martinique. In 1974 finally, France decided to abolish the different currencies for its overseas departments. On New Year 1975, the Bank of France took over the issuance privilege and introduced metropolitan money everywhere. The local paper money was withdrawn within three months.

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Monetary History Sources