Currencies/CFP franc

Introduction

The CFP franc (French: franc Pacifique, ISO code XPF) is the currency used in the French overseas collectivities of French Polynesia, New Caledonia, and Wallis and Futuna. It is subdivided into 100 centimes, though centime denominations are no longer in circulation. The CFP franc is pegged to the euro at a fixed rate and continues to serve as a stable regional currency for the French Pacific territories.

History

The CFP franc (Change Franc Pacifique) was introduced in December 1945, along with the CFA franc, following France’s post-war monetary reorganization. Its creation aimed to protect the Pacific territories from the devaluation of the French franc that occurred after World War II.

Initially, the CFP franc was pegged to the U.S. dollar, but in 1949 it was revalued and pegged to the French franc at a fixed rate. When France adopted the euro in 1999, the CFP franc was linked to the new European currency at a rate of 1,000 XPF = €8.38, a rate that remains in effect today.

The abbreviation “CFP” originally stood for Colonies françaises du Pacifique (“French colonies of the Pacific”), but in 2022, it was officially redefined as Collectivités françaises du Pacifique (“French Pacific collectivities”) to reflect their modern political status.

The CFP franc is issued and managed by the Institut d’émission d’outre-mer (IEOM), which is responsible for its circulation and regulation across all three territories.

Coins

Coins denominated in CFP francs have been issued in a variety of compositions and denominations for standard circulation, trade coinage, and pattern coinage. The series includes denominations of 1, 2, 5, 10, 20, 50, 100, and 200 francs.

Older coins were made from aluminium, nickel, copper-nickel, nickel brass, and nickel bronze, designed to withstand tropical climates. In 2021, the coin series was modernized, discontinuing the 1 and 2 franc coins and introducing a new 200-franc bimetallic coin.

Coin designs depict local symbols such as fish, palm trees, native flora, and Polynesian motifs, reflecting the cultural diversity of the Pacific territories.

Banknotes

Banknotes of the CFP franc have been issued in denominations of 500, 1,000, 5,000, and 10,000 francs. Earlier issues also included smaller denominations such as 25 and 50 francs, which were later replaced by coins.

The Institut d’émission d’outre-mer introduced a unified series of banknotes in 2014 for all territories. These notes feature consistent designs celebrating Pacific culture and nature while bearing regional identifiers for New Caledonia, French Polynesia, and Wallis and Futuna. The current notes incorporate advanced security features, bright tropical color palettes, and durable polymer materials suited to humid environments.

Currency

The CFP franc operates as a decimal currency

1 franc = 100 centimes

However, centimes are purely theoretical and are not used in circulation. The fixed exchange rate with the euro remains

1,000 CFP francs = €8.38

This peg provides monetary stability and links the French Pacific economies to the eurozone while allowing them to maintain independent cash issuance and fiscal policies suited to local needs.

Legacy

The CFP franc symbolizes both economic stability and cultural identity for France’s Pacific territories. It provides insulation from international currency fluctuations while maintaining a close financial relationship with France and the euro area.

Although there have been discussions about replacing the CFP franc with the euro, local governments have favored retaining the existing system due to its stability and administrative independence.

The CFP franc remains one of the few colonial-era currencies still in active use, illustrating the continued economic integration of France’s overseas territories.