Posted in Finance, Accounting and Economics Terms, Total Reads: 265
Definition: French Franc
French Franc was the currency of France until 1999 when euro currency was introduced. French Franc was first introduced in 1360. At that time, one French franc was equal to one livre tournois, unit of account during the Middle Ages.
In 1795, the Franc’s unit of account was changed and 1 Franc equalled to 10 decimes which was equal to 100 centimes. In 1803, a new Franc, Germinal Franc, was introduced. The Latin Monetary Union was founded by the French in 1865 and the Germinal Franc was used as a common currency. In 1873, France joined the gold standard and 0.290322581g gold equalled to 1 Franc.
The Franc was used in World War II. When Germany occupied France It became a sub-currency of the German Reichsmark. Franc joined the Bretton Woods system after world war II. A new French Franc was introduced in 1960, due to devaluation in the 1940s and 1950s. In 1999, the French Franc was partially replaced by the Euro. Since 2002, euro has been the official currency of the France.