CFP Franc (XPF): Definition, History, Denominations, and Role
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Summary:
The CFP franc (XPF) serves as the official currency in French overseas island collectivities, such as French Polynesia and New Caledonia. This guide explores its history, pegging to the euro, denominations, and its role in the Pacific region.
Understanding the CFP Franc (XPF)
The CFP franc, symbolized as F and referred to as the Central Pacific franc, serves as the official currency primarily in French Polynesia. Its denominations include bills in increments of 500, 1,000, 5,000, and 10,000, accompanied by coins in 1, 2, 5, 10, 20, 50, and 100 increments.
Historical evolution
The CFP franc has undergone a notable historical evolution. Initially pegged to the U.S. dollar, the currency shifted its pegging to the French franc, reflecting the significant economic changes following World War II. Subsequently, as France adopted the euro, the CFP franc made a transitional shift to being pegged to the euro.
Role in economic recovery
Introduced in the post-World War II era, the CFP franc played a pivotal role in the economic recovery and stability of French Pacific territories. Its introduction aimed to counteract the weakness of the French franc, providing a stabilizing force alongside the West African CFA franc.
Distinct forms of currency
During its inception, distinct forms of the CFP franc were used for French Polynesia, New Caledonia, and the New Hebrides. Wallis and Futuna utilized the New Caledonian franc. Over time, all CFP banknotes have evolved to be identical, featuring landscapes or historical figures of French Polynesia on one side and New Caledonia on the other.
Current denominations
Presently, the CFP franc is issued in banknote denominations of 500, 1,000, 5,000, and 10,000, while coins are minted in values of 1, 2, 5, 10, 20, 50, and 100. This diverse range of denominations caters to various transactional needs within the currency’s user base.
Special considerations
The CFP franc’s significance extends beyond its role as a currency; it is an integral part of a currency union. Operating similarly to the Eurozone, this union pegs all associated currencies, including the CFP, to the euro. This unique approach facilitates cross-border trade and contributes to the economic strength of the involved countries.
The bottom line
The Central Pacific franc (CFP) serves as a unified currency, promoting economic stability in French Pacific territories. Pegged to the euro, it reflects the euro’s value in international markets, tracing its origins back to post-World War II agreements.
Frequently asked questions
Is the CFP franc used in France?
The CFP Franc is not accepted in France. However, exchange kiosks in airports and banks can easily exchange CFP into euros.
What is the CFP franc to dollar exchange rate?
The CFP is pegged to the euro and will move in the same way the euro does when exchanged with the U.S. Dollar. However, the value of the currency is less, and as of February 28, 2022, the CFP is trading at 0.0093 USD for each CFP.
Are XPF and CFP the same?
XPF and CFP are the same currency. CFP stands for Central Pacific franc, whereas XPF is the symbol the currency trades under on international exchange markets.
What are the CFP franc coins?
The current CFP franc coin denominations are in values of 1, 2, 5, 20, 50, and 100 XPF.
What are the CFP franc banknotes?
The current CFP franc banknote denominations are in the values of 500, 1,000, 5,000, and 10,000.
Key takeaways
- The CFP franc (XPF) is the official currency for French Polynesia and neighboring French protectorates.
- Introduced in 1945, the CFP franc aimed to protect French colonies from the post-World War II devaluation of the French franc.
- Initially pegged to the U.S. dollar, the CFP franc later transitioned to the French franc and is currently pegged to the euro.
- Distinct forms of the currency existed during its inception, catering to different territories, but banknotes are now identical.
- The CFP franc is part of a currency union, pegging all associated currencies to the euro, fostering economic cooperation.
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