Republic of Djibouti is a small country located in north-east Africa home to a population of 486,000. Civil war from 1991-94 coupled with violence that ended for the most part by year 2001 drastically dropped consumption and economic output sharply during the 1990’s. Djibouti remains a small fragile economy in a part of the world where regional risk is considered high.
Economic Statistics
Total GDP as measured by purchasing power parity stands at $619 billion USD (2002) with corresponding GDP/Capita at $1,300 USD. GDP growth rates for year 2002 at 3.5 percent. Inflation figures have been reported on the low side with year 2002 at 2 percent, 1999 at 1.5 percent and 1997 at 3 percent. The current account is in deficit at 5.3 percent of GDP (2003). Industries include U.S. military base, salt, construction, trade, shipping transhipment centre.
CURRENCY: ISO Symbol ‘DJF’, Djibouti franc. At time of review on May 15, 2006, the Djibouti franc had an exchange value of 177.72 DJF to the US-dollar (USD). Currency board arrangement, fixed to the US-dollar. Black market activity on the DJF is evident, currency volatility is a factor. No foreign exchange restrictions.
CURRENCY HISTORY:historical valuations include the Djibouti franc fixed to the USD since 1973 at 177.721 DJB. Djibouti as a former overseas French territory of France, the French franc played a role in the use of national currency prior to 1973.
CURRENCY FORECAST: currency risk factors include: high population growth rate, few natural resources, inadequate infrastructure, external debt difficulties, reliance on foreign assistance, 50 percent of the population live below the poverty line, etc. Conversely, Djibouti’s strategic location in north-east Africa and status as a free trade zone plays an active role as a marine port transhipment/trade - regional supply centre for petroleum products especially for trade with Middle East countries.
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