The Djibouti franc was created in 1949 by the government of France. The Djibouti Treasury was replaced in 1983 as the bank of issue and central bank by the new National Bank of Djibouti. There were five commercial banks in 1993 and a National Development Bank, 51% government owned. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $161.2 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $318.3 million.
There is no securities exchange. Both the pace and content of economic reforms are inconsistent. Failures to meet the financial criteria established with the IMF led to a postponement of the disbursal of the second installment of a $6.6 million credit agreed in April 1996. Wrangling over conditionality with France also delayed payment of part of the $9.3 million assistance package agreed upon in September 1996. The attitudes of the IMF and France, combined with problems in rescheduling debts to France, provided a rather somber backdrop to the negotiation of the 1997 budget.