Coat of arms of Monaco. The motto 'Deo Juvante' features on a lot of Monegasque coins and means 'With God's Help'.
History
Antiquity
Monaco's name comes from Greek Monoikos, which means 'single house'. The colony was founded around 600 BC. Monoikos was Latinised to Monoecus and used as such througout the middle ages.
Middle Ages
Monaco became part of the Republic of Genoa in 1215. One of Genoese families that competed for power in this maritime republic, the House of Grimaldi, built a fortress on a rock in Monaco in 1297. The rock was officially purchased by the family in 1419, a time when the Aragonese Empire (a precursor of Spain) was the most influential in the region. Monaco's territory was around 20 times larger those days than it currently is, and included the towns of Roquebrune and Menton, which now form the French corridor between Monaco and Italy.
From 1612, Honoré II was the first Grimaldi to declare himself Prince of Monaco. He sought protection from France against Spain and hence became a vassal of the French King, while retaining some level of autonomy. The story of the Grimaldis is pretty 'nouveau riche', which fits nicely with the reputation that modern Monaco has.
Modern era (18th century to date)
France captured Monaco in 1793, but the Grimaldis were allowed to return after Napoleon's defeat in 1814. Subsequently Monaco became a protectorate of the Kingdom of Sardinia which was awarded the full territory of the former Republic of Genoa.
Monaco and the Roquebrune-Menton area that tried to join Sardinia on various occasions but became French in 1860. Over time speakers of native Italian became a minority in this region.
In 1859 the Kingdom of Sardinia and France declared war on Austria over its Italian province of Lombardy-Venetia. In return for French support, Sardinia ceded some territories to France, which included the city of Nice (Nizza). The Roquebrune-Menton area revolted and seceded from Monaco in a bid to join Sardinia. France recognised Monaco as an independent state but took over its defense and border patrol.
Monaco's casino was so successful that the Grimaldis decided to stop collecting income tax from 1869. This attracted wealthy tax-evading citizens from all over the world and formed the basis of what Monaco is today, a playground for the super rich.
In 1918 a crisis erupted over the succession of Prince Albert I. As his only son, the later Louis II, was unmarried and had an illegitimate daughter, the first in line of succession was a German prince of Württemberg, which angered France. Instead, sucession laws were changed and even included that all Monegasque princes are approved by France. Louis II succeeded his father in 1922.
During World War 2 both Italy and Germany briefly occupied Monaco on separate occasions.
After World War II Prince Rainier III, a grandson of Louis II through his illegitimate daughter Charlotte, diversified the small state's economy into financial offshoring, reducing the dependency on its casino. With the ongoing globalisation of the world economy, Monaco branded itself really well as a tax haven with the classical luxurious touch of the French Riviera. Because Monaco's surface area is only 2 km2, it has the highest property prices in the world at $58,000/m2. An average Monegasque has an annual income over $150k, the highest in the world.
Currency
The Principality of Monaco minted its own coins from at least the 17th century. Its monetary system was based on the Lira/Livre, worth 20 Soldi/Sols each of 12 Denari/Deniers. A Pezzetta was worth 3 Sols, a Luigino 5 Sols and a Scudo 3 Lire. With the French annexation in 1793, the French Franc replaced the Monegasque Livre.
During the years as a Sardinian protectorate Monaco probably continued to use the Frenxh Franc. The Sardinian Lira was worth the same anyway so maybe coins from both currencies were used in Monaco during the early 19th century. In 1838 coins of 5 Centimes, 1 Décime and 5 Francs were minted in Paris, an indication that France was still very influentual in what was officially a Sardinian protectorate. Whatever the case, after 1861 the French Franc was the sole currency of Monaco, with only a few gold coins struck in name of the principality until the end of the gold standard of the Latin Monetary Union.
France suffered from an inflationary monetary crisis as a consequence of World War I. The French Franc lost 80% of its value which made all silver and gold coinage disappear. To combat the shortage in small change, the Chamber of Commerce of Monaco ordered the minting of 50 Centimes, 1 and 2 Francs in 1924 and 1926. No more Monegasque coins were produced during the interwar years.
During World War 2 Monaco minted aluminium coins of 1, 2 and 5 Francs similar to the ones in use by neighbouring Vichy France. After liberation the same coins, now in aluminium-bronze, were minted for Monaco. Cupro-nickel 10 & 20 Francs were added in 1947. A new series of 10, 20, 50 and 100 Francs were minted from 1950. At first the Monegasque 50 & 100 Francs were larger than their French counterparts, but the second versions were in equal size.
The French redenomination in 1960 (1 Nouveau Franc = 100 old Francs) was followed by Monaco. Monegasque coins followed the specifications of the French coins, but at much lower mintages. In 1999 the Euro replaced the French Franc at a rate of 6.5537 Francs per €. Monaco is not an EU member but due to its treaty with France it could adopt the Euro as well, including the minting its own coins. The 2001 series (minted before the changeover in 2002) was minted in reasonable quantities but quickly hoarded by Euro coin collectors in such quantities that especially the 1, 2 and 5 Eurocents became very scarce. Designs changed when Albert II succeeded Rainier III in 2005, but only 1 and 2 Euros have occasionally been put in circulation before disappearing into the hands of collectors.
https://en.numista.com/catalogue/monaco-1.html
