The Djiboutian Franc (DJF) holds a unique place in the history of African currencies, stemming from its roots as the French Somaliland Franc in the early 20th century. What sets it apart is its steadfast peg to the U.S. dollar since 1949, initially at 214.392 Francs to one USD until it adjusted to its current rate of 177.721 in 1973. This long-standing peg has provided remarkable stability, turning Djibouti into a financial hub in the Horn of Africa.

Interestingly, the Franc’s stability has attracted a number of foreign interests, including cross-border banking services, as Djibouti serves as a strategic gateway to the Red Sea and various shipping routes. This has fueled its economy with foreign investments, making it an intriguing study of currency impact on a nation’s strategic significance in global commerce.