Currency that Went Bananas

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This article is sponsored by CAC Grading, the collectors’ choice, inspiring confidence through accurate and consistent coin grading.

This is the story of a Congolese political and military officer named Joseph-Désiré Mobutu who was president of the Democratic Republic of the Congo from 1965 to 1971. He also served as the first and only president of Zaire from 1971 to 1997. It’s also the tale of Katanga (a region that claimed independence from 1960-63 before reintegrating) and its currency, which “went bananas” after the Congo Crisis of 1960. 

During the crisis, Mobutu served as chief of staff of the Congolese Army that overthrew the nation’s government of Patrice Lumumba with the support of the United States and Belgium. Mobutu then influenced a government action that sanctioned Lumumba’s execution in 1961. Subsequently, he led the entire country’s armed forces and acquired full power through a second coup in 1965.

The Kleptocracy & the Fascist

In 1967 Mobutu changed the Congo’s name to Zaire and changed his own name to Mobutu Sese Seko (“the all-powerful”) in 1972. He quickly became widely known for nepotism and corruption, with an estimated personal wealth of up to $5 billion. His régime, called a kleptocracy, persisted even though Zaire’s economy suffered from high inflation, debt, and currency devaluation, while he enjoyed luxuries and uncontrolled spending. 

Exactly how Mobutu acquired his enormous wealth is not clearly known. Conjecture and learning about the unusual coins that he authorized in 1961 shine light on the subject . His Katangese franc coins were intended to be the currency of the ephemeral State of Katanga from 1960 to 1963 during its period of independence from the Republic of Congo. Mobutu’s authorized coins were designed to represent the unity of his government. Attractive as they are, they had a nefarious purpose that the public knew nothing about.

Katanga’s Coins

The coins were made of copper in denominations of 1 franc and 5 francs. They display a bunch of bananas on the obverse and the ancient traditional copper Katanga ceremonial cross (a large copper barter item that was locally used for money in pre-colonial times) on the reverse. They were used briefly in 1961 before being replaced by the Congolese franc after the collapse of the State of Katanga in 1963.

In addition to the idealistic and attractive motif of the copper coins, a quantity of a second variety of the 5-franc piece was also struck in gold. No records seem to exist to document the exact number of gold pieces that were made, but the number could have been as high as 20,000, and they did not enter circulation. They are now often referred to as pattern or collector coins. Each piece weighs .3857 ounces of nearly pure gold. Few exist outside of collections today, as most were apparently melted.

Mobutu’s weakened era of influence and corruption lasted to some degree into 1990, when he was forced by opponents to allow a two-party system of government that was headed by Laurent-Désiré Kabila in 1997. Enfeebled and suffering from cancer, Mobutu died that year at his home in Morocco.

Currency Manipulation

The story of why the colorful copper coins were ever made—and why a very unusual gold counterpart was also made—is an intriguing episode in numismatic history that likely explains how the all-powerful Mobutu Sese Seko gained his enormous wealth. It should act as a warning of what others could someday attempt to do through currency manipulation.

The gold 5 francs were obviously made to look exactly like the copper 5 francs, except for their difference in color. Thus, they could be easily mistaken and used according to their stated value, rather than their actual gold worth, which was, of course, many times higher. The theory is that under this system, Mobutu could legally swap out copper coins in his collection with gold coins of the same face value. This allowed him to stockpile massive amounts of wealth to the detriment of his nation’s citizens and the gold reserves.

Whatever the intent was for making the mysterious Katanga gold coins, it was not the first or last attempt at currency manipulation. There have been numerous variations in minting activities in several countries. Even some United States coins have not been immune to similar marketing strategies.

Conclusion

Mobutu managed to rule for 32 years despite repeated coups and uprisings, and his inability to maintain any substantial economic growth or development. For an individual who managed decades of precarious leadership, Mobutu managed to lose his position rather quickly. With the end of the Cold War in the 1990s, Mobutu lost much of his Western financial support that he received in return for his intervention in the affairs of Zaire’s neighbors. By 1997 he was ill, and a rebel leader seized the opportunity. After a coup led by rebel leader Laurent Kabilain in early 1997, he relinquished control of the government in May 1997. He died in exile on September 7, 1997, in Morocco.

Mobutu’s kleptocracy and currency manipulation in the ’60s benefitted few but himself. His “bananas” currency is a modern-day reminder of a complex and nefarious ruler—and make for a unique collectible with a compelling tale.

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