The Djiboutian franc (Faran-ka Jabuuti)

The short version

The Djiboutian franc (code DJF) is the money of Djibouti. Its value is fixed at 177.721 francs to one US dollar, and Djibouti has no exchange controls (Banque Centrale de Djibouti, History of the Djibouti franc). The IMF noted in 2004 that the franc had been pegged to the dollar at the same parity since the early 1970s (IMF, Public Information Notice 04/23). For the Somali shilling and the older currencies of the Somali lands, see The Somali shilling and the dollar.

How the franc began

All dates below are from the Central Bank of Djibouti (History of the Djibouti franc):

• Before 1949: a private bank held the right to issue money in the territory, then called the Côte Française des Somalis (French Somali Coast).
• 20 March 1949: the French government created the Djibouti franc by decree 49/374, at 214.392 francs to one dollar, based on the dollar's gold value of 888.6708 milligrams of fine gold. Issue passed to the public Treasury, which kept an account at the French American Banking Corporation in New York. Every franc had to be backed by its value in dollars, and anyone, resident or not, could change francs freely. The territory left the franc zone and became a free trade zone.
• 18 December 1971: after the dollar's gold value was cut by 7.895 percent, the rate became 197.466 francs to the dollar.
• 13 February 1973: after a further 10 percent cut, the rate became 177.721. It has not changed since.
• 27 June 1977: at independence, the new government gave the right to issue money to the national Treasury for the time being.
• 3 December 1977: the Central Bank of Djibouti was created.

How the currency board works

Under a currency board, the central bank can issue local money only when it holds the same value in a reserve currency. The Central Bank of Djibouti describes its rules as (Banque Centrale de Djibouti, History; The currency board):

• the reserve currency is the US dollar;
• notes and coins in circulation are covered by foreign currency at more than 100 percent;
• commercial banks are required to hold convertible foreign currency in proportion to their franc deposits;
• the bank may lend to the state only with the specific approval of the Council of Ministers;
• the bank pays its dividends to the national Treasury.

Recent figures

The IMF's 2025 review of Djibouti gave (IMF, Press Release 25/292, 11 September 2025):

The IMF board called for amending the central bank law to give the bank more autonomy, bringing in reserve requirements step by step, and keeping future central bank profits to build reserves (same source).

Sources disagree

• Date of creation. The Central Bank of Djibouti's history page gives 20 March 1949 for decree 49/374, while its currency board page and its table of features give 17 March 1949 (History; The currency board).
• Reserve cover. The Central Bank states that money in circulation is covered at more than 100 percent; the IMF said in 2025 that reserve levels "remain below the monetary base", a wider measure that also includes bank reserves held at the central bank (Banque Centrale de Djibouti; IMF, 2025).

For Somali money transfer firms and banks that work in Djibouti, see Dahabshil Bank International. For the port, see Port of Djibouti and Doraleh.