The CFP franc ( French: , called the ''franc'' in everyday use) is the

currency A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. A more general def ...

used in the French

overseas collectivities The French overseas collectivities (''collectivité d'outre-mer'' or ''COM'') are first-order administrative divisions of France, like the French regions, but have a semi-autonomous status. The COMs include some former French overseas colonies ...

(, or COM) of

French Polynesia )Territorial motto: ( en, "Great Tahiti of the Golden Haze") , anthem = , song_type = Regional anthem , song = " Ia Ora 'O Tahiti Nui" , image_map = French Polynesia on the globe (French Polynesia centered).svg , map_alt = Location of Frenc ...

New Caledonia ) , anthem = "" , image_map = New Caledonia on the globe (small islands magnified) (Polynesia centered).svg , map_alt = Location of New Caledonia , map_caption = Location of New Caledonia , mapsize = 290px , subdivision_type = Sovereign st ...

, and

Wallis and Futuna Wallis and Futuna, officially the Territory of the Wallis and Futuna Islands (; french: Wallis-et-Futuna or ', Fakauvea and Fakafutuna: '), is a French island collectivity in the South Pacific, situated between Tuvalu to the northwest, Fiji ...

. The initials ''CFP'' originally stood for ('French colonies of the Pacific'). This was later changed to ('Pacific Financial Community') and then to its present term, ('Pacific Franc Exchange'). Its

ISO 4217 ISO 4217 is a standard published by the International Organization for Standardization (ISO) that defines alpha codes and numeric codes for the representation of currencies and provides information about the relationships between individual cu ...

currency code is ''XPF''. The CFP franc is subdivided into 100 centimes.

History

1945–1949

The CFP franc was created in December 1945, together with the

CFA franc The CFA franc (french: franc CFA, , Franc of the Financial Community of Africa, originally Franc of the French Colonies in Africa, or colloquially ; abbreviation: F.CFA) is the name of two currencies, the West African CFA franc, used in eight We ...

, used in Africa. The reason for the creation of these francs was the weakness of the

French franc The franc (, ; sign: F or Fr), also commonly distinguished as the (FF), was a currency of France. Between 1360 and 1641, it was the name of coins worth 1 livre tournois and it remained in common parlance as a term for this amount of money. It w ...

immediately after the

Second World War World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...

. When France ratified the

Bretton Woods Agreement The Bretton Woods system of monetary management established the rules for commercial and financial relations among the United States, Canada, Western European countries, Australia, and Japan after the 1944 Bretton Woods Agreement. The Bretto ...

in December 1945, the French franc was devalued in order to set a fixed exchange rate with the

US dollar The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...

. New currencies were created in the French colonies to spare them the strong devaluation of December 1945. René Pleven, the French minister of finance, was quoted saying: "In a show of her generosity and selflessness,

metropolitan France Metropolitan France (french: France métropolitaine or ''la Métropole''), also known as European France (french: Territoire européen de la France) is the area of France which is geographically in Europe. This collective name for the European ...

, wishing not to impose on her far-away daughters the consequences of her own poverty, is setting different exchange rates for their currency." The other French colonial currencies were set at a fixed exchange rate with the French franc. However, the CFP franc was set at a fixed exchange rate with the US dollar, which played a major role in the economy of the French Pacific territories on account of

World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...

. That situation ended in September 1949 when the CFP franc was given a fixed exchange rate with the French franc.

1949–1985

The CFP franc has been issued by the IEOM (, 'Overseas Issuing Institute') since 1967. The IEOM has its headquarters in

Paris Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. S ...

. The currency was initially issued in three distinct forms for

and the

New Hebrides New Hebrides, officially the New Hebrides Condominium (french: link=no, Condominium des Nouvelles-Hébrides, "Condominium of the New Hebrides") and named after the Hebrides Scottish archipelago, was the colonial name for the island group ...

. (See

French Polynesian franc The franc is the currency of French Polynesia. It is subdivided into 100 ''centimes''. Since 1945, it has been part of the CFP franc. History Until 1914, the French franc circulated in French Polynesia. That year, banknotes were issued specificall ...

New Caledonian franc The franc is the currency of New Caledonia and Wallis and Futuna. It is subdivided into 100 ''centimes''. Since 1945, it has been part of the CFP franc. History Until 1873, the French franc circulated on New Caledonia. That year banknotes were is ...

and

New Hebrides franc The franc was the currency of the Anglo-French Condominium of the Pacific island group of the New Hebrides (which became Vanuatu in 1980). It circulated alongside British and later Australian currency. The New Hebrides franc was nominally divide ...

used the New Caledonian franc. Although the banknotes of the New Hebrides bore the name of the territory, the notes of French Polynesia and New Caledonia could only be distinguished by the name of the capitals (

Papeete Papeete (Tahitian language, Tahitian: ''Papeete'', pronounced ) is the capital city of French Polynesia, an overseas collectivity of the France, French Republic in the Pacific Ocean. The Communes of France, commune of Papeete is located on the isl ...

and

Nouméa Nouméa () is the capital and largest city of the French special collectivity of New Caledonia and is also the largest francophone city in Oceania. It is situated on a peninsula in the south of New Caledonia's main island, Grande Terre, a ...

, respectively) on the reverse of the notes. In 1969, the New Hebrides franc was separated from the CFP franc and was replaced by the

Vanuatu vatu The vatu (abbreviation: VT;The Reserve Bank of Vanuatu.Current Banknotes and Coins in Circulation" Accessed 2 March 2013. ISO code: VUV) is the currency of Vanuatu. The vatu has no subdivisions. Etymology The term ''vatu'', used in all thre ...

in 1982.

Since 1985

The new highest denomination 10,000 CFP franc banknote (€83.80) issued on 1 October 1986, was the first one that was not overprinted with a city name. The 500 franc banknote, issued in 1992, and the 1,000 and 5,000 franc banknotes, issued in 1995, are also without the overprint. The designs of the 500, 1,000, and 5,000 franc banknotes did not change until 2014, when new designs and sizes were introduced. Today, all banknotes are strictly identical from New Caledonia to French Polynesia. One side of the banknotes shows landscapes or historical figures of

, while the other side of the banknotes shows landscapes or historical figures of

. The coins are still separated in two sets: one side of the coins is identical from New Caledonia to French Polynesia, while the other side of the coins is inscribed with the name in New Caledonia and in Wallis and Futuna, and with the name in French Polynesia. Both sets of coins can be used in all three French territories. The situation of the CFP coins is thus quite similar to that of the

euro coins There are eight euro coin denominations, ranging from one cent to two euros (the euro is divided into a hundred cents). The coins first came into use in 2002. They have a common reverse, portraying a map of Europe, but each country in the eurozone ...

, which have a national side but can be used in all countries of the

eurozone The euro area, commonly called eurozone (EZ), is a currency union of 19 member states of the European Union (EU) that have adopted the euro (€) as their primary currency and sole legal tender, and have thus fully implemented EMU policies ...

Historical exchange rates

* December 26, 1945 to September 20, 1949 – Fixed exchange with the US dollar at US$1 = F.CFP 49.60. Non-fixed exchange rate with the old French franc, which devalued four times vs. the US dollar. From F.CFP 1 = FF 2.40 (FF = French franc) in December 1945, the exchange rate reached F.CFP 1 = FF 5.50 in September 1949. * September 21, 1949 to December 31, 1959 – Fixed exchange rate with the old French franc at F.CFP 1 = FF 5.50 * January 1, 1960 to December 31, 1998 – Fixed exchange rate with the French franc at F.CFP 1 = NF 0.055 or NF 1 ≈ F.CFP 18.182 (January 1, 1960: 100 'old' French francs became 1 'new' franc) * January 1, 1999 onward – Fixed exchange rate with the euro at F.CFP 1,000 = €8.38 or €1 ≈ F.CFP 119.332 (January 1, 1999: euro replaced FRF at the rate of 6.55957 FRF for 1 euro) **The calculation to the euro was

0.055 \div 6.55957 \times 1000 \approx 8.3847

, which meant that 1000 XPF was not worth exactly €8.38 prior to the introduction of the euro. The value of 1000 XPF in euros was instead rounded to the nearest euro cent upon the introduction of the euro. The 1960 and 1999 events are merely changes in the currency in use in France; the relative value of the CFP franc (XPF) vs. the French franc / euro is unchanged since 1949.

Coins

In 1949, New Caledonia and what was then called French Oceania (now

) began to issue coins. The coins have been separated in two types: the obverses are identical, whilst the reverses are distinct. Both types of coins can be used in all three French territories. The situation of the CFP coins is thus quite similar to that of the

, which have a national side but can be used in all countries of the

euro zone The euro area, commonly called eurozone (EZ), is a currency union of 19 member states of the European Union (EU) that have adopted the euro (€) as their primary currency and sole legal tender, and have thus fully implemented EMU policies ...

. The

had a different history of coin issuance before being replaced by the

in 1982. The IEOM circulates in the French Pacific Colonies have two sets of metal coins with a face value of 1, 2, 5, 10, 20, 50, and 100 francs. The first series runs mainly in New Caledonia and Wallis and Futuna, the second in French Polynesia, although both series have distinct legal tender in each of the regions. Each piece – consisting of

copper Copper is a chemical element with the symbol Cu (from la, cuprum) and atomic number 29. It is a soft, malleable, and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a pinkis ...

nickel Nickel is a chemical element with symbol Ni and atomic number 28. It is a silvery-white lustrous metal with a slight golden tinge. Nickel is a hard and ductile transition metal. Pure nickel is chemically reactive but large pieces are slow to ...

magnesium Magnesium is a chemical element with the symbol Mg and atomic number 12. It is a shiny gray metal having a low density, low melting point and high chemical reactivity. Like the other alkaline earth metals (group 2 of the periodic ta ...

aluminum Aluminium (aluminum in American and Canadian English) is a chemical element with the symbol Al and atomic number 13. Aluminium has a density lower than those of other common metals, at approximately one third that of steel. It has ...

– is designed by: first an obverse depicting a landscape, a fruit, an animal or a sculptural typical of the area, the name of the territory associated with the series, and the denomination on the other hand a reverse contained an allegorical representation (''Minerva'', goddess of wisdom or portrait of ''Marianne'', symbol of the Republic), the initials of the bank issuing central (IEOM), the vintage (corresponding to the year of manufacture) and the words "French Republic" with a slight of the aspect is smooth or fluted. Values 1, 2, and 5 franc coins have

aluminium Aluminium (aluminum in American and Canadian English) is a chemical element with the symbol Al and atomic number 13. Aluminium has a density lower than those of other common metals, at approximately one third that of steel. I ...

and

in both sets. 10, 20, and 50 francs only have a

composition, meaning it was completely made of nickel until 2005, then copper nickel. The 100 Franc was made of nickel bronze until 2005, and from 2006

, nickel, and aluminum. Starting 1 September 2021, a new set of coins were issued, common to all 3 French Pacific Territories. 1 Franc & 2 Francs coins will disappear and a brand new 200 Francs coin will be available.

Banknotes

The IEOM began issuing banknotes in New Hebrides in 1965, and in New Caledonia and French Polynesia in 1969. On 1 October 1986, a new banknote, the 10,000 francs, was introduced which did not bear any distinguishing mark and was common to both French Polynesia and New Caledonia. These were followed, between 1992 and 1995, by 500, 1,000, and 5,000 franc notes for all of the French Pacific Territories. The overall design has not changed since 1969. One side shows landscapes or historical figures of New Caledonia, while the other side of the banknotes shows landscapes or historical figures of French Polynesia. On January 6, 2014, the IEOM unveiled designs for a new series of banknotes. The new notes were issued on January 20. The older issues ceased circulation on September 30 of that year, but can be exchanged indefinitely at the

Institut d'émission d'outre-mer An institute is an organisational body created for a certain purpose. They are often research organisations (research institutes) created to do research on specific topics, or can also be a professional body. In some countries, institutes can ...

offices.French Pacific Territories new 2014 note family confirmed
BanknoteNews.com. February 3, 2014. Retrieved on 2014-02-04.

Tārā

Before the French regulated the currency on

Tahiti Tahiti (; Tahitian ; ; previously also known as Otaheite) is the largest island of the Windward group of the Society Islands in French Polynesia. It is located in the central part of the Pacific Ocean and the nearest major landmass is Austr ...

, traders often used dollars. The word ''dollar'' became (often written without accents as ''tara'', or ''tala''), and this term is still used among native Tahitian and local Chinese traders as an unofficial unit, worth 5 francs. Thus for a price of 200 francs, one would say (40 tārā) in Tahitian. The currency of

Samoa Samoa, officially the Independent State of Samoa; sm, Sāmoa, and until 1997 known as Western Samoa, is a Polynesian island country consisting of two main islands (Savai'i and Upolu); two smaller, inhabited islands (Manono Island, Manono an ...

is also called the tālā.

References

* *

External links

* {{DEFAULTSORT:Cfp Franc Currencies introduced in 1945 Currency unions Fixed exchange rate