CFP franc
Encyclopedia
The CFP franc is the currency
used in the French
overseas collectivities (collectivités d’outre-mer, or COM) of French Polynesia
, New Caledonia
and Wallis and Futuna
. The initials CFP originally stood for Colonies Françaises du Pacifique (“French colonies of the Pacific”). This was later changed to Communauté Financière du Pacifique (“Pacific Financial Community”) and then to the present official term, Comptoirs Français du Pacifique (“French Pacific Banking Agreement”). The ISO 4217
currency code is XPF.
, used in Africa. The reason for the creation of these francs was the weakness of the French franc
immediately after the Second World War
. When France ratified the Bretton Woods Agreement
in December 1945, the French franc was devalued in order to set a fixed exchange rate with the US dollar
. 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
, wishing not to impose on her far-away daughters the consequences of her own poverty, is setting different exchange rates for their currency.” The CFA franc and the other 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
. That situation ended in September 1949 when the CFP franc was given a fixed exchange rate with the French franc.
.
The currency was initially issued in three distinct forms for French Polynesia
, New Caledonia
and the New Hebrides
. (See French Polynesian franc
, New Caledonian franc
and New Hebrides franc
.) Wallis and Futuna
uses 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
and Nouméa
, 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
in 1982.
Today, all banknotes are strictly identical from New Caledonia to French Polynesia. One side of the banknotes shows landscapes or historical figures of French Polynesia
, while the other side of the banknotes shows landscapes or historical figures of New Caledonia
.
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 “New Caledonia” in New Caledonia and in Wallis and Futuna, and with the name “French Polynesia” 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
, which have a national side but can be used in all countries of the eurozone
.
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.
) 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 euro coins
, which have a national side but can be used in all countries of the euro zone.
The New Hebrides franc
had a different history of coin issuance before being replaced by the Vanuatu vatu
in 1982.
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.
, French Polynesia
, traders often used dollars. The word “dollar” became tārā (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 tārā e maha-ahuru (40 tārā) in Tahitian
. The currency of Samoa
is also called the tālā
.
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
used in the French
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
overseas collectivities (collectivités d’outre-mer, or COM) of French Polynesia
French Polynesia
French Polynesia is an overseas country of the French Republic . It is made up of several groups of Polynesian islands, the most famous island being Tahiti in the Society Islands group, which is also the most populous island and the seat of the capital of the territory...
, New Caledonia
New Caledonia
New Caledonia is a special collectivity of France located in the southwest Pacific Ocean, east of Australia and about from Metropolitan France. The archipelago, part of the Melanesia subregion, includes the main island of Grande Terre, the Loyalty Islands, the Belep archipelago, the Isle of...
and Wallis and Futuna
Wallis and Futuna
Wallis and Futuna, officially the Territory of the Wallis and Futuna Islands , is a Polynesian French island territory in the South Pacific between Tuvalu to the northwest, Rotuma of Fiji to the west, the main part of Fiji to the southwest, Tonga to the southeast,...
. The initials CFP originally stood for Colonies Françaises du Pacifique (“French colonies of the Pacific”). This was later changed to Communauté Financière du Pacifique (“Pacific Financial Community”) and then to the present official term, Comptoirs Français du Pacifique (“French Pacific Banking Agreement”). The ISO 4217
ISO 4217
ISO 4217 is a standard published by the International Standards Organization, which delineates currency designators, country codes , and references to minor units in three tables:* Table A.1 – Current currency & funds code list...
currency code is XPF.
1945–1949
The CFP franc was created in December 1945, together with the CFA francCFA franc
The CFA franc is the name of two currencies used in Africa which are guaranteed by the French treasury. The two CFA franc currencies are the West African CFA franc and the Central African CFA franc...
, used in Africa. The reason for the creation of these francs was the weakness of the French franc
French franc
The franc was a currency of France. Along with the Spanish peseta, it was also a de facto currency used in Andorra . 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...
immediately after the Second World War
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
. When France ratified the Bretton Woods Agreement
Bretton Woods system
The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states in the mid 20th century...
in December 1945, the French franc was devalued in order to set a fixed exchange rate with the US dollar
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
. New currencies were created in the French colonies to spare them the strong devaluation of December 1945. René Pleven
René Pleven
René Pléven was a notable French politician of the Fourth Republic. A member of the Free French, he helped found the Democratic and Socialist Union of the Resistance , a political party that was meant to be a successor to the wartime Resistance movement...
, the French minister of finance, was quoted saying: “In a show of her generosity and selflessness, metropolitan France
Metropolitan France
Metropolitan France is the part of France located in Europe. It can also be described as mainland France or as the French mainland and the island of Corsica...
, wishing not to impose on her far-away daughters the consequences of her own poverty, is setting different exchange rates for their currency.” The CFA franc and the other 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
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
. 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 (Institut d’émission d’outre-mer, “Overseas Issuing Institute”) since 1967. The IEOM has its headquarters in ParisParis
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
.
The currency was initially issued in three distinct forms for French Polynesia
French Polynesia
French Polynesia is an overseas country of the French Republic . It is made up of several groups of Polynesian islands, the most famous island being Tahiti in the Society Islands group, which is also the most populous island and the seat of the capital of the territory...
, New Caledonia
New Caledonia
New Caledonia is a special collectivity of France located in the southwest Pacific Ocean, east of Australia and about from Metropolitan France. The archipelago, part of the Melanesia subregion, includes the main island of Grande Terre, the Loyalty Islands, the Belep archipelago, the Isle of...
and the New Hebrides
New Hebrides
New Hebrides was the colonial name for an island group in the South Pacific that now forms the nation of Vanuatu. The New Hebrides were colonized by both the British and French in the 18th century shortly after Captain James Cook visited the islands...
. (See French Polynesian franc
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:...
, New Caledonian franc
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:...
and New Hebrides franc
New Hebrides franc
The franc was the currency of the Anglo-French Condominium of the Pacific island group of the New Hebrides . It circulated alongside British and later Australian currency. The New Hebrides franc was nominally divided into 100 centimes, although the smallest denomination was the 1 franc...
.) Wallis and Futuna
Wallis and Futuna
Wallis and Futuna, officially the Territory of the Wallis and Futuna Islands , is a Polynesian French island territory in the South Pacific between Tuvalu to the northwest, Rotuma of Fiji to the west, the main part of Fiji to the southwest, Tonga to the southeast,...
uses 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
-Sights:* Interactive Google map of Papeete, to discover the 30 major tourist attractions in Papeete downtown.*The waterfront esplanade*Bougainville Park -Sights:* Interactive Google map of Papeete, to discover the 30 major tourist attractions in Papeete downtown.*The waterfront...
and Nouméa
Nouméa
Nouméa is the capital city of the French territory of New Caledonia. It is situated on a peninsula in the south of New Caledonia's main island, Grande Terre, and is home to the majority of the island's European, Polynesian , Indonesian, and Vietnamese populations, as well as many Melanesians,...
, 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
Vanuatu vatu
The vatu is the currency of Vanuatu.The vatu has no subdivisions.-History:The vatu was introduced in 1982, after independence, to replace the New Hebrides franc at par...
in 1982.
Since 1985
The new highest denomination 10,000 CFP franc banknote (83.8 euro) issued in 1985 was the first one that was not overprinted with a city name. The 500 franc banknote, issued in 1992, and the 1000 and 5000 franc banknotes, issued in 1996, are also without the overprint. The designs of the 500, 1000, 5000 franc banknotes did not change.Today, all banknotes are strictly identical from New Caledonia to French Polynesia. One side of the banknotes shows landscapes or historical figures of French Polynesia
French Polynesia
French Polynesia is an overseas country of the French Republic . It is made up of several groups of Polynesian islands, the most famous island being Tahiti in the Society Islands group, which is also the most populous island and the seat of the capital of the territory...
, while the other side of the banknotes shows landscapes or historical figures of New Caledonia
New Caledonia
New Caledonia is a special collectivity of France located in the southwest Pacific Ocean, east of Australia and about from Metropolitan France. The archipelago, part of the Melanesia subregion, includes the main island of Grande Terre, the Loyalty Islands, the Belep archipelago, the Isle 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 “New Caledonia” in New Caledonia and in Wallis and Futuna, and with the name “French Polynesia” 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
Euro coins
There are eight euro coin denominations, ranging from one cent to two euros . The coins first came into use in 2002. They have a common reverse, portraying a map of Europe, but each country in the eurozone has its own design on the obverse, which means that each coin has a variety of different...
, which have a national side but can be used in all countries of the eurozone
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
.
Historical exchange rates
- December 26, 1945 to September 20, 1949 - Fixed exchange with the US dollar at 1 USD = 49.6 XPF. Non-fixed exchange rate with the French franc, which devaluates 4 times vs. the US dollar. From 1 XPF = 2.40 FRF (FRF = French franc) in December 1945, the exchange rate reached 1 XPF = 5.50 FRF in September 1949.
- September 21, 1949 to December 31, 1959 - Fixed exchange rate with the French franc at 1 XPF = 5.50 FRF
- January 1, 1960 to December 31, 1998 - Fixed exchange rate with the French franc at 1 XPF = 0.055 FRF (January 1, 1960: 100 'old' francs became 1 'new' franc)
- January 1, 1999 onward - Fixed exchange rate with the euro at 1,000 XPF = 8.38 euro (January 1, 1999: euro replaced FRF at the rate of 6.55957 FRF for 1 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 French PolynesiaFrench Polynesia
French Polynesia is an overseas country of the French Republic . It is made up of several groups of Polynesian islands, the most famous island being Tahiti in the Society Islands group, which is also the most populous island and the seat of the capital of the territory...
) began to issue coins. The coins have been separated in two types: the obverses
Obverse and reverse
Obverse and its opposite, reverse, refer to the two flat faces of coins and some other two-sided objects, including paper money, flags , seals, medals, drawings, old master prints and other works of art, and printed fabrics. In this usage, obverse means the front face of the object and reverse...
are identical, whilst the reverses
Obverse and reverse
Obverse and its opposite, reverse, refer to the two flat faces of coins and some other two-sided objects, including paper money, flags , seals, medals, drawings, old master prints and other works of art, and printed fabrics. In this usage, obverse means the front face of the object and reverse...
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 euro coins
Euro coins
There are eight euro coin denominations, ranging from one cent to two euros . The coins first came into use in 2002. They have a common reverse, portraying a map of Europe, but each country in the eurozone has its own design on the obverse, which means that each coin has a variety of different...
, which have a national side but can be used in all countries of the euro zone.
The New Hebrides franc
New Hebrides franc
The franc was the currency of the Anglo-French Condominium of the Pacific island group of the New Hebrides . It circulated alongside British and later Australian currency. The New Hebrides franc was nominally divided into 100 centimes, although the smallest denomination was the 1 franc...
had a different history of coin issuance before being replaced by the Vanuatu vatu
Vanuatu vatu
The vatu is the currency of Vanuatu.The vatu has no subdivisions.-History:The vatu was introduced in 1982, after independence, to replace the New Hebrides franc at par...
in 1982.
Banknotes
The IEOM began issuing banknotes in New Hebrides in 1965, and in New Caledonia and French Polynesia in 1969. In 1985, 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 1996, by 500, 1000 and 5000 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.
Tārā
Before the French regulated the currency on TahitiTahiti
Tahiti is the largest island in the Windward group of French Polynesia, located in the archipelago of the Society Islands in the southern Pacific Ocean. It is the economic, cultural and political centre of French Polynesia. The island was formed from volcanic activity and is high and mountainous...
, French Polynesia
French Polynesia
French Polynesia is an overseas country of the French Republic . It is made up of several groups of Polynesian islands, the most famous island being Tahiti in the Society Islands group, which is also the most populous island and the seat of the capital of the territory...
, traders often used dollars. The word “dollar” became tārā (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 tārā e maha-ahuru (40 tārā) in Tahitian
Tahitian language
Tahitian is an indigenous language spoken mainly in the Society Islands in French Polynesia. It is an Eastern Polynesian language closely related to the other indigenous languages spoken in French Polynesia: Marquesan, Tuamotuan, Mangarevan, and Austral Islands languages...
. The currency of Samoa
Samoa
Samoa , officially the Independent State of Samoa, formerly known as Western Samoa is a country encompassing the western part of the Samoan Islands in the South Pacific Ocean. It became independent from New Zealand in 1962. The two main islands of Samoa are Upolu and one of the biggest islands in...
is also called the tālā
Samoan tala
The tālā is the currency of Samoa. It is divided into 100 sene. The terms tālā and sene are the equivalents or transliteration of the English words dollar and cent, in the Samoan language....
.
See also
- CFA francCFA francThe CFA franc is the name of two currencies used in Africa which are guaranteed by the French treasury. The two CFA franc currencies are the West African CFA franc and the Central African CFA franc...
- Currencies related to the euro
- French Polynesian francFrench Polynesian francThe franc is the currency of French Polynesia. It is subdivided into 100 centimes. Since 1945, it has been part of the CFP franc.-History:...
- Monetary union
- New Caledonian francNew Caledonian francThe 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:...
- New Hebrides francNew Hebrides francThe franc was the currency of the Anglo-French Condominium of the Pacific island group of the New Hebrides . It circulated alongside British and later Australian currency. The New Hebrides franc was nominally divided into 100 centimes, although the smallest denomination was the 1 franc...