Historical Sketch

In the 14th century, the Sahelian empires of Mali and Songhai extended throughout western Africa and dominated the trans-Saharan trade. Their influence declined when sea trade by the European powers gained more and more importance. After the collapse of the Songhai empire a succession of smaller states emerged in the territory. In the late 1870s, France began expanding its colonial hold in Senegal. Military posts were established along the Niger river, and in 1892, the colony of French Sudan was established. In 1899 already, the Sudan was dissolved. The southern parts were merged with the existing French colonies there, the rest was divided into Upper Senegal and Middle Niger territories. Just three years later, the two parts were rejoined as Senegambia-Niger, renamed into Upper Senegal-Niger in 1904. The original name of French Sudan was finally restored in 1921. The colony was transformed into an overseas territory in 1946, and in preparation for the French Union it got constituted as autonomous republic in 1958. In April 1959, Sudan and Senegal formed the Mali Federation with the prospect of ultimately merging the two former colonies and attracting other to join. In June 1960, after the failure of the French Union, the Mali Federation attained independence but broke apart already in late September. The name Mali was subsequently retained for the former Sudan.

Monetary History Overview

After independence in 1960, Mali remained in the French West African Common Currency Area of the former French colonies. But two years later, the government decided to withdraw. In July 1962, the new central bank began operations, and the Malian Franc became the national currency. It remained pegged to the French Franc and par with the CFA Franc, but the banknotes and coins of the common currency were demonetized within two weeks. Without the guarantee of the Bank of France, the peg to the French Franc came under pressure, and in May 1967, a 50% devaluation had to be decreed. Since the withdrawal from the CFA Franc area had been done on political grounds rather than economic, the overthrow of the government in the early 1980s led to a reconsideration of the move. In October 1983, Mali therefore re-joined the West African Monetary Union, and in June 1984, the West African CFA Franc was re-adopted instead of the national currency. The Malian banknotes and coins were demonetized until September.

Mali joined the International Monetary Fund (IMF) on 27.09.1963.

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