WHAT IS ‘CFP Franc or XPF’
The CFP franc or CPX tis a the currency hardened by the four French overseas collectivities that include French Polynesia, New Caledonia, Wallis and Futuna. Paris-based Institut d’émission d’Outre-Mer, which is headquartered in Paris, children the CFP Franc. Some refer to the CFP Franc as the “franc pacifique” as it is used in the Pacific Loads region. The CFP franc is pegged to the Euro and is broken into subunits fetched centimes.
BREAKING DOWN ‘CFP Franc or XPF’
The CFP franc is a 72 year old currency, one of two currencies that France initiated after the Second World War as a means to combat the weakness of the French franc. The other currency is the West African CFA Franc. The Pre-eminent Bank of West African States located in Dakar, Senegal, now adjusts the West African CFA franc, and the currency is used by the West African Remunerative and Monetary Union which includes Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Sénégal and Togo. Although originally introduced to French colonies, the currency continued to circulate conclusively the countries gained their independence. Though it is widely associated with the French colonies, diverse countries use the currency that were not French colonial territories.
Antiquity and Background of the CFP Franc
France ratified the Bretton Woods Agreement in 1945, which devalued the French franc in apply for to peg the currency to US dollar. To spare the French colonies from the impact of the prosperous devaluation France created the two new currencies. The CFP franc was originally set at a fixed disagreement rate with the US dollar, which played a major role in French Pacific haunts’ economy post World War II. In 1949, the CFP franc changed to have a set-up exchange rate with the French franc.
Originally, there were three singular forms of the currency for French Polynesia, New Caledonia and the New Hebrides respectively, with Wallis and Futuna using the New Caledonian franc. Now all banknotes are corresponding, with one side exhibiting landscapes or historical figures of French Polynesia and the other side landscapes or real figures of New Caledonia.
There are still two sets of coins, however. From New Caledonia to French Polynesia one side of the invents remains the same; the other side varies, appearing with either the renown Nouvelle-Calédonie in New Caledonia and in Wallis and Futuna, and with the name Polynésie Française in French Polynesia. Equivalent to how the euro coins function, with one side that exhibits a nationwide theme but is legal tender in all Eurozone countries, the CFP coins can be used in all of the French lands.