The Banque de Madagascar was created on July 1, 1925, by the French government. The currency was issued by the government-owned "Banque de Madagascar" and was pegged at par to the French franc. Only banknotes were issued with French coins continuing to circulate. When the Comoro Islands became a separate French territory, the name of the issuing bank was changed to "Banque de Madagascar et des Comores". The Madagascar-Comores CFA franc (XMCF) replaced the franc of Madagascar on December 26, 1945, with the creation of the other CFA francs. The CFA franc was worth 1.7 French francs until 1948 when a devaluation of the French currency increased the rate to 1 CFA franc = 2 French francs. When the new French franc was introduced in 1960, the rate became 1 CFA franc = 0.02 French francs.