[3] From 1877 until its failure in 1881, it was located in the Hôtel de Gerden on the city's central Place d'Armes, lately the seat of the Court of Accounts of Luxembourg [fr].
[4]: 61 These arrangements were suspended under the German occupation of Luxembourg during World War II but re-established in 1944 following the country's liberation.
[5] In 1983, following frictions within the Belgium–Luxembourg Economic Union,[6] and as the prospect of a future European Monetary Union became gradually more tangible, the Werner-Thorn-Flesch Ministry decided to create the IML so that Luxembourg would be represented on an equal basis with other European countries in forthcoming negotiations about monetary arrangements.
The IML printed banknotes, even though it did not conduct a monetary policy of its own, and also succeeded the Commissariat au Contrôle des Banques by taking over financial sector supervision.
[8]: 56 On 1 June 1998, the IML was replaced by the Central Bank of Luxembourg that became a founding member of the Eurosystem, while its supervisory role was transferred to a separate authority, the Commission de Surveillance du Secteur Financier.