Historical Sketch

In the run-up to the 1884 Berlin Conference, Spain occupied a first Saharan territory on the west coast of Africa, to be extended further in the following years. In 1903, a separate colonial administration was established, and the territory remained separate after the establishment of the Spanish protectorate over Morocco. Spain did not cede the Sahara territory when the southern protectorate was returned to Morocco in early 1958 but integrated it into the mainland as overseas province. After the end of the Franco era, Spain unilaterally withdrew from the Sahara in February 1976 without having clarified its status. Immediately afterwards, the Sahrawi Arab Democratic Republic (SADR) was proclaimed by the "Popular Front for the Liberation of Saguia el Hamra and Río de Oro (Polisario)" and, at the same time, and Morocco and Mauritania invaded and annexed the Sahara. Mauritania withdrew already in 1979 and renounced to its claim in favor of the SADR but the vacated territory was occupied by Morocco. Since then, the Western Sahara is effectively under Moroccan control, while the independent republic continues to be recognized by the African Union and many countries despite the lack of any control over the territory. The UN call for a referendum to determine the future state has never been followed.

Monetary History Overview

During the Spanish colonial period the mainland banknotes and coins were used. After the Spanish withdrawal of 1976 and subsequent annexation by Morocco and Mauritania their currencies became current. The currency exchange was left to the individuals. In the 1990s, the so-called "Saharan Peseta" emerged as national currency. Initially the move was rather intended to promote the production of collector coins and stamps (the latter were formally declared illegal by the International Postal Union). On occation of the 20th anniversary of the declaration of independence, the Sahrawi Arab Democratic Republic (SADR) formally adopted the "Saharan Peseta" as national currency for use in the liberated territories. This step was, however, more of a symbolic nature as the SADR's territorial control never went beyond a few deserted lands along the eastern border.

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Monetary History Sources