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Luxembourg currency then and now
Before the introduction of the Euro, Luxembourg had many currencies in circulation. From ancient coins such as the ducaton and the patagon to more recent coins such as the germinal franc and the Luxembourg franc, each currency tells a part of the Grand Duchy's history.
The Luxembourg franc ended its legal tender status on February 28, 2002 and was replaced by the euro, the currency of the European Union, at a conversion rate of 1 euro = LUF 40.3399.
Luxembourg's first currencies
Many of us have heard of the Luxembourg franc, which preceded the euro, but what came before? Let's take a quick look at the history of currencies in Luxembourg, right up to the Luxembourg franc.
First currencies
Luxembourg has been a place of monetary exchange since ancient times. Even before the formation of the first empires and the Grand Duchy of Luxembourg, coins were in circulation during the late Celtic period. Archaeological excavations at Titelberg, in the south of Luxembourg, have revealed small coins used as early as the first century BC.
Spanish rule
In the 16th century, Luxembourg was under the control of the Spanish Empire. The Spanish kings, who were also Dukes of Luxembourg, issued coins in the capital. In 1578, Philip II issued coins like the magnifique écu, the demi-ducaton, and the cinquième de ducaton.
Austrich rule
During the rule of the Archdukes of Austria, Albert and Isabella, coins like the patagon demi et quart were minted, along with escalins (6 sous), coins of three sous, one sou, and one liard. During Philip IV's reign, you'll also find gold coins, patagons, half-patagons, escalins, and sous in circulation.
The Habsburg Monarchy
From 1757 to 1792, the Habsburg monarchy issued copper and silver coins in denominations of ⅛, ¼, ½, 1, 3, 6, 12, and 72 sous. They also made copper half, one, and two liard coins.
The Revolution and Napoleon campaigns
During the French Revolution and the Napoleonic period, the germinal franc, which was introduced in 1803, was used until 1825. It made daily transactions easier thanks to its decimal division.
19th Century: Florin and Thaler
After the First French Empire fell apart in 1815, Luxembourg used the Dutch monetary system with the silver florin for a while. During the Belgian Revolution of 1831, both the Dutch guilder and the Belgian franc were used. In 1842, Luxembourg joined the Zollverein and started using the thaler as its main currency, even though the Belgian franc was still used as a unit of account.
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What was the Luxembourg franc and how much was it worth?
We have seen so far that there have been many coins in Luxembourg, but when did the Luxembourg franc appear, how long did it circulate and how much was it worth?
Emergence of the institutions behind the Luxembourg franc
In the 19th century, there were several currencies in circulation in Luxembourg. The French Revolution brought in the decimal monetary system with the Germinal franc in 1803, which was used until 1825. In 1839, Luxembourg gained independence and joined the Zollverein, which led to the Prussian thaler being used alongside the Belgian franc as the unit of account. Two banks, the Banque Internationale à Luxembourg (BIL) and the Banque Nationale du Grand-Duché de Luxembourg, were set up, but the latter went bankrupt in 1881.
Introduction of the Luxembourg franc
As the First World War unfolded, Luxembourg gradually moved away from the German currency. In 1914, a law gave BIL banknotes the status of legal tender. Then, in 1918, the term "Luxembourg franc" was officially adopted. In 1921, Luxembourg and Belgium joined forces to form an economic union. In 1929, they introduced a parity of 1 to 1 between the Belgian franc and the Luxembourg franc. After periods of change, this ratio was re-established and confirmed in 1949 and 1979.
Growth and stability
In response to what was going on in Europe and the devaluation of the Belgian franc in 1982, Luxembourg set up the Institut Monétaire Luxembourgeois (IML) in 1983. In 1998, the IML became the Banque centrale du Luxembourg (BCL) when the European System of Central Banks (ESCB) and the European Central Bank (ECB) were set up.
Transition to the euro
In 1998, eleven European Union Member States, including Luxembourg, were chosen to join the euro zone. The euro was officially introduced on January 1, 1999, and euro notes and coins began circulating on January 1, 2002. On February 28, 2002, the Luxembourg franc lost its legal tender status with a conversion rate of 1 euro = LUF 40.3399. This was a big moment in Luxembourg's monetary history. It fully integrated the country into the European Monetary Union.
Euro in Luxembourg
As of January 1, 2002, the euro has been the official currency of Luxembourg, replacing the Luxembourg franc. As a member of the euro zone, Luxembourg uses the euro as its currency, contributing to the European monetary union. The euro's introduction was a big step forward for the country's economic integration with the EU. It's helped keep things stable and made it easier to do business across borders.
The euro coins used in Luxembourg are the same as those used in the rest of the euro zone, but Luxembourg coins have their own distinctive features on the back of the coin. There are eight different euro coins in circulation. There are 1 centime, 2 centimes, 5 centimes, 10 centimes, 20 centimes, 50 centimes, 1 euro, and 2 euros. The national sides of these coins, including those of Luxembourg, have their own particular designs.
Lëtzebuerg
The Luxembourg national side of the euro coins was designed by the artist Yvette Gastauer-Claire. All the coins depict the likeness of His Royal Highness, the Grand Duke Henri. They also show the year they were issued and the name of the country in Luxembourgish.
The commemorative coins
While euro coins are standard across the euro zone, each Member State can choose to mint commemorative coins. Luxembourg commemorative coins are known for featuring national motifs. The other side of commemorative coins might show portraits of historical figures, coats of arms, or important events.
These coins are designed to be instantly recognizable as being from Luxembourg. They add a unique touch to the euro coinage while still meeting the standards of the euro currency.
Here are just a few of them, although there are many more. You can find the full list on the Banque centrale du Luxembourg website.
2005
Grand Duke Henri's 50th birthday
2007
Grand Duke Henri and Grand Ducal Palace
2010
Armorial bearings of the Grand Duke
2013
National anthem of the Grand Duchy of Luxembourg
2015
125th anniversary of the Nassau-Weilburg dynastyg
2018
175th anniversary of the death of Grand Duke Wilhelm 1st
2020
Birth of Prince Charles
2024
100 years of Luxembourg Francs
How to exchange euros in Luxembourg
If you're traveling to Luxembourg from another country, you probably have some questions about where to exchange currency. A lot of tourists are used to travelling with a certain amount of money that they plan to exchange when they get to their destination. However, this might not be the best approach in Luxembourg.
Unlike other tourist destinations, Luxembourg have few currency exchange offices. It is therefore advisable to plan ahead and explore other options for managing your money during your stay, such as card payments, ATM withdrawals and the use of modern online banks.
Card payments and ATM withdrawals
Luxembourg is a modern country where card payments are widely accepted. You can use credit and debit cards such as Visa, MasterCard and American Express in most establishments, including hotels, restaurants and shops. Contactless payments are also common and very convenient for everyday transactions.
What's more, ATMs allow you to withdraw cash in euros directly from your bank card, although withdrawal charges may apply depending on your bank.
Online banking and special offers
For travellers looking for a more flexible solution, neo-banks such as Revolut, N26 or Wise offer excellent alternatives. These digital banking services allow you to manage your funds in several currencies, make international transfers and pay directly with prepaid or virtual cards.
Neo-banks have a number of advantages: they offer very competitive exchange rates, make it easy to manage your finances via an intuitive mobile application, and allow free or low-cost cash withdrawals abroad. They also offer alerts and notifications for better control of your budget, fast access to funds, and advanced security options to protect your transactions.
Frequently Asked Questions (FAQ)
What were the main currencies in circulation in Luxembourg before the euro?
Before the introduction of the euro, Luxembourg used several currencies. Among the main ones were the Germinal franc, used until 1825, the Prussian thaler, adopted in 1842, and the Belgian franc, in circulation after independence in 1839. During the 19th century, currencies such as the florin and talero were also in use, with the Belgian franc remaining a unit of account until the end of the Second World War.
When was the Luxembourg franc replaced by the euro?
The Luxembourg franc was officially replaced by the euro on 1 January 2002. From that date, the euro became the official currency of Luxembourg, putting an end to the use of the Luxembourg franc for financial transactions. However, to facilitate the transition, euro notes and coins began to circulate at the same time as the last Luxembourg francs. This period of dual circulation lasted until 28 February 2002, when the Luxembourg franc definitively ceased to be legal tender.
What was the value of the Luxembourg franc against the euro when it was introduced?
When the euro was introduced, the conversion rate was set at 1 euro = 40.3399 Luxembourg francs (LUF). This rate was used to convert the old currencies into euros, thus facilitating the monetary transition.
What methods of payment are available for visitors to Luxembourg?
Visitors to Luxembourg can use a variety of payment methods. Credit and debit cards, such as Visa, MasterCard and American Express, are widely accepted in hotels, restaurants and shops. Contactless payments are also common. In addition, neo-banks such as Revolut or N26 offer convenient solutions for managing funds and making transactions with competitive exchange rates.
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Source: fr.wikipedia.org, es.wikipedia.org, fr.wikipedia.org, fr.wikipedia.org, bcl.lu, ecb.europa.eu, numismativy.fr, infos.rtl.lu
We took photos from these sources: Markus Spiske on Unsplash, Banque Centrale Européenne, yvert.com, eurocollection.shop, Société Française des Monnaies, pieces-et-monnaies.com, ebay.com
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