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The franc was the currency of Luxembourg between 1854 and 1999 (except during the period 1940 and 1944). The franc remained in circulation until 2002, when it was replaced by the euro. During the period 1999-2002, the franc was officially a subdivision of the euro (1 euro = 40.3399 francs) but the euro did not circulate. One franc was subdivided into 100 centimes.

Under the principle of "no obligation and no prohibition", financial transactions could be conducted in EUR and LUF, but physical payments could only be made in LUF, as euro notes and coins were not available yet.

Contents 1 History 2 Use of Belgian franc 3 See also 4 External links

[edit] History

The conquest of most of western Europe by Revolutionary and Napoleonic France led to the French franc's wide circulation, including in Luxembourg. However, incorporation into the Netherlands in 1815 resulted in the Dutch gulden becoming Luxembourg's currency. Following Belgium's independence from the Netherlands, the Belgian franc was adopted in 1839 and circulated in Luxembourg until 1842 and again from 1848. Between 1842 and 1848, Luxembourg (as part of the German Zollverein) used the Prussian Thaler.

In 1854, Luxembourg began issuing its own franc, at par with the Belgian franc. The Luxembourg franc followed the Belgian franc into the Latin Monetary Union in 1865. In 1926, Belgium withdrew from the Latin Monetary Union. However, the 1921 monetary union of Belgium and Luxembourg survived, forming the basis for the full Belgium-Luxembourg Economic Union in 1932. In 1935, the link between the Luxembourg and Belgian francs was revised, with 1 Luxembourg franc = 1¼ Belgian francs.

On 26 August 1940, the Luxembourg franc was replaced by the German Reichsmark at a rate of 1 Reichsmark = 10 francs. The Luxembourg franc was reestablished in 1944, once more tied to the Belgian franc at par.

The Luxembourg franc was fixed at 1 euro = 40.3399 francs on January 1, 1999. Euro coins and banknotes were introduced on January 1, 2002. Old franc coins and notes lost its legal tender status in February 28, 2002.

[edit] Use of Belgian franc

Between 1944 and 2002, 1 Luxembourg franc was equal to 1 Belgian franc. Belgian francs were legal tender inside Luxembourg and Luxembourg francs were legal tender in Belgium. Nevertheless, payment with Luxembourg banknotes were commonly denied by shopkeepers in Belgium, either by ignorance or by fear that their other customers would refuse the banknotes (again, either by ignorance or fear of being denied payment with it later), forcing them to go through the hassle of a trip to their bank to redeem the value of the banknote.

[edit] See also

• Luxembourgish euro coins

[edit] External links

• Overview of franc of Luxembourg from the BBC

Preceded by: Dutch gulden	Luxembourgish currency 1854-1940	Succeeded by: German Reichsmark
Preceded by: German Reichsmark	Luxembourgish currency 1944-1999<ref>1999 by law, 2002 de facto</ref>	Succeeded by: Euro

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Francs
Current	Burundian franc | CFA franc | CFP franc | Comorian franc | Congolese franc | Djiboutian franc | Guinean franc | Liechtenstein frank | Rwandan franc | Swiss franc | UIC franc
Defunct	Algerian franc | Belgian franc | Cambodian franc | French Camerounian franc | French franc | Katangan franc | Gold-Franc | Luxembourgish franc | Malagasy franc | Malian franc | Monegasque franc | Moroccan franc | New Hebrides franc | Saar franc | Tunisian franc | Westphalian Frank
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Pre-euro and other EU currencies

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Eurozone Austrian Schilling | Belgian franc | Dutch gulden | Finnish mark | French franc | German Mark | Greek drachma | Irish pound | Italian lira | Luxembourgish franc | Monegasque franc | Portuguese escudo | San Marinese lira | Spanish peseta | Vatican lira ERM II Cypriot pound | Danish krone | Estonian kroon | Latvian lats | Lithuanian litas | Maltese lira | Slovak koruna | Slovenian tolar Other EU British pound | Bulgarian lev | Czech koruna | Gibraltar pound | Hungarian forint | Polish złoty | Romanian leu | Swedish krona This box: view • talk • edit</div>

de:Luxemburger Franc

es:Franco luxemburgués eo:Luksemburga franko fr:Franc luxembourgeois it:franco lussemburghese lb:Lëtzebuerger Frang nl:Luxemburgse frank nn:Luxembourgsk franc pt:Franco luxemburguês