The Portuguese first landed on the Guinea coast in 1446, exporting slaves to Cape Verde. Bissau and Cacheu were Portuguese colonies beginning in 1753 and 1614 respectively. In 1879, they were united to form Portuguese Guinea and were separated from Cape Verde. Guinea-Bissau proclaimed its independence on September 24, 1973, and its independence was recognized on September 10, 1974.
Portuguese Mil Reis (PTM) were legal tender in Portuguese Guinea until 1911 when the Escudo (PTE) replaced the Mil Reis. Local Mil Reis (GWM) and Escudos (GWE) in the form of banknotes and coins were issued for Portuguese Guinea by the Banco Nacional Ultramarino while it was a colony. The first coins were issued for Portuguese Guinea in 1933. The currency reform of 1953 unified the Portuguese escudo and the currencies of the Portuguese colonies, making them a true currency area like the sterling area or French franc zone.
After gaining its independence, Guinea-Bissau introduced the Peso (GWP) on February 28, 1976 at par with the Escudo. Both the Peso and Escudo were divisible into 100 Centavos. The Banco Nacional da Guinea-Bissau issued banknotes for Guinea-Bissau. On January 1, 1997, Guinea-Bissau joined the Franc area, becoming part of the BCEAO Franc (XOF-S), setting 1 BCEAO Franc equal to 65 Guinea-Bissau Pesos. Guinea notes have the letter "S" on them. The Franc is divisible into 100 Centimes.
The West African Economic Monetary Union (WAEMU) is a regional entity established by a treaty signed on January 10, 1994 and entered into force on August 1, 1994 after its ratification by all member countries. The aim of the treaty—built on the achievements of the West African Monetary Union (WAMU), established in 1962—was to create a new framework for fostering the achievement of the member countries' growth and development objectives. It was also to provide the credibility required to sustain the fixed exchange rate for the common currency.
The Union has a common central bank, the Central Bank of West African States (Banque Centrale des états de l'Afrique de l'Ouest (BCEAO)), with headquarters in Dakar and national branches in the member states. WAEMU comprises eight francophone countries: Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. Mali and Guinea-Bissau joined the Union on June 1, 1984 and May 2, 1997, respectively. The BCEAO issues the common currency of the WAEMU member countries, the CFA franc (CFA stands for "Communauté Financière Africaine" since 1958; from 1945 through 1958, CFA stood for "Colonies Françaises d'Afrique")
On August 2, 1993, Members of Banque des États de l’Afrique Centrale (BEAC) ceased redeeming CFA franc notes issued by BEAC circulating outside their borders, and On 17 December 1993, members of BCEAO suspended redemption of CFA franc notes issued by Banque des États de l’Afrique Centrale (BEAC) circulating in BCEAO countries. Benin notes have the letter "B" placed on them. Some numismatic coins have been issued by Dahomey/Benin, but no coins have been issued for general circulation. |
