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CFP Franc (XPF) Definition

What Is the CFP Franc (XPF)?

The CFP franc (XPF) is the official currency of 4 French abroad island collectivities: French Polynesia, New Caledonia, Wallis, and Futuna. The foreign money was launched in 1945 to guard the colonies from the post-Second World Struggle devaluation of the French franc and is subdivided into 100 centimes.

The XPF, the ISO currency code of the CPF franc, is pegged to the euro. As of Sept. 20, 2021, $1 USD is the same as 101.9 XPF.

Key Takeaways

  • The CFP franc (XPF) is the official foreign money of French Polynesia and its neighboring French protectorates.
  • CFP stands for Central Pacific franc and is often known as the “franc Pacifique,” as a result of its use within the Pacific Ocean area.
  • Presently, the CFP franc is pegged to the euro at a fee of 1 EUR = 119.332 XPF.

Understanding the CFP Franc (XPF)

CFP stands for Central Pacific franc and is often known as the “franc Pacifique,” as a result of its use within the Pacific Ocean area generally known as French Polynesia. The foreign money image for XPF is F and payments are denominated in 500, 1,000, 5,000, and 10,000 increments, whereas cash are minted in 1, 2, 5, 10, 20, 50, and 100 increments.

Paris-based Institut d’émission d’Outre-Mer (IEOM) points the XPF. Initially, the CFP franc had a hard and fast change fee with the U.S. dollar (USD), which performed a big position within the economies of the French Pacific territories’ after World Struggle II. In 1949, the CFP franc modified to have a hard and fast change fee with the French franc (F).

When France transitioned to the euro, so too did the XPF peg. Presently, the CFP franc is pegged to the euro, with the ten,000 F, the very best denominated CFP observe, being equal to 83.8 euros.

The CFP franc is one in all two currencies that France launched after the Second World Struggle to fight the weak point of the French franc. The opposite cash issued right now was the West African CFA franc (XOF). The Central Financial institution of West African States situated in Dakar, Senegal, now regulates the West African CFA franc, in addition to the West African Financial and Financial Union, which incorporates Benin, Burkina Fasso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Sénégal, and Togo. 

Historical past and Background of the CFP Franc (XPF)

After the financial turmoil of the Second World Struggle, France and different nations ratified the Bretton Woods Agreement. The Settlement compelled the devaluation of many currencies, together with the French franc. The doc additionally stipulated the pegging of the French franc to the U.S. greenback. To spare the French colonies from the impression of the huge devaluation, France created two new unbiased currencies, the West African CFA (XOF) and the Polynesian CFP Franc (XPF). 

At first, there have been three distinct types of the foreign money for French Polynesia, New Caledonia, and the New Hebrides, respectively, with Wallis and Futuna utilizing the New Caledonian franc. Now all banknotes are equivalent, with one facet exhibiting landscapes or historic figures of French Polynesia and the opposite facet displaying landscapes or historic figures of New Caledonia.

There are nonetheless two units of cash, nonetheless. From New Caledonia to French Polynesia, one facet of the cash stays the identical, whereas the reverse facet will range, showing with both the title Nouvelle-Calédonie (New Caledonia, Wallis, and Futuna) or the title Polynésie Française (French Polynesia).

Just like how the euro cash operate, with one facet that displays a nationwide theme however is authorized tender in all eurozone nations, the CFP cash can be utilized in all nations which might be a part of the eurozone, in addition to the entire French territories.

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