CFP Franc (XPF)
What Is the CFP Franc (XPF)?
The CFP franc (XPF) is the official currency of four French overseas island collectivities: French Polynesia, New Caledonia, Wallis, and Futuna. The currency was acquainted in 1945 with safeguard the states from the post-Second World War devaluation of the French franc and is partitioned into 100 centimes.
The XPF, the ISO currency code of the CPF franc, is pegged to the euro. Subsequently, the XPF changes when it is compared against the United States Dollar (USD).
Figuring out the CFP Franc (XPF)
CFP represents Central Pacific franc and is otherwise called the "franc Pacifique," due to its utilization in the Pacific Ocean region known as French Polynesia. The currency symbol for XPF is F and bills are named in 500, 1,000, 5,000, and 10,000 additions, while coins are printed in 1, 2, 5, 10, 20, 50, and 100 augmentations.
Paris-based Institut d'\u00e9mission d'Outre-Mer (IEOM) issues the XPF. Initially, the CFP franc had a fixed exchange rate with the U.S. dollar (USD), which assumed a huge part in the economies of the French Pacific regions' after World War II. In 1949, the CFP franc changed to have a fixed exchange rate with the French franc (F).
At the point when France changed to the euro, so too did the XPF peg. Currently, the CFP franc is pegged to the euro, with the 10,000 F, the highest designated CFP note, being equivalent to 83.8 euros.
The CFP franc is one of two currencies that France presented after the Second World War to combat the weakness of the French franc. The other cash gave right now was the West African CFA franc (XOF). The Central Bank of West African States situated in Dakar, Senegal, presently controls the West African CFA franc, as well as the West African Economic and Monetary Union, which incorporates Benin, Burkina Fasso, C\u00f4te d'Ivoire, Guinea-Bissau, Mali, Niger, S\u00e9n\u00e9gal, and Togo.
History of the CFP Franc (XPF)
After the economic unrest of the Second World War, France, and different nations sanctioned the Bretton Woods Agreement. The Agreement forced the devaluation of numerous currencies, including the French franc. The document additionally stipulated the pegging of the French franc to the U.S. dollar. To spare the French settlements from the impact of the gigantic devaluation, France made two new independent currencies, the West African CFA (XOF) and the Polynesian CFP Franc (XPF).
Like how the euro coins capability — with one side that exhibits a national topic yet is legal tender in all eurozone countries — the CFP coins can be utilized in all countries that are part of the agreement.
From the beginning, there were three distinct forms of the currency for French Polynesia, New Caledonia, and the New Hebrides, individually, with Wallis and Futuna utilizing the New Caledonian franc. Presently all banknotes are indistinguishable, with one side showing scenes or historical figures of French Polynesia and the opposite side showing scenes or historical figures of New Caledonia.
There are as yet two arrangements of coins, be that as it may. From New Caledonia to French Polynesia, one side of the coins continues as before, while the converse side will differ, showing up with either the name Nouvelle-Cal\u00e9donie (New Caledonia, Wallis, and Futuna) or the name Polyn\u00e9sie Fran\u00e7aise (French Polynesia).
The CFP is a part of a currency union. A currency union is where at least two countries or economies share a currency. The most well known of these unions, and the biggest, is the Eurozone. A currency union is recognized from an all out economic and monetary union as in spite of the fact that they share a common currency, there may not be extra integration between countries.
The CFP joins the currencies under the union by pegging them all to the euro. Currency unions are commonly used to work with trade and to reinforce the economies of the countries in question.
The Bottom Line
The Central Pacific franc (CFP) is a currency shared between numerous countries. It is pegged to the euro so it follows that currency's value in international markets. The CFP was brought into reality as a currency by France to forestall further devaluation brought about by an agreement endorsed after World War II.
- The CFP franc (XPF) is the official currency of French Polynesia and its adjoining French protectorates.
- The CFP should be exchanged to be utilized in different countries or currency zones.
- CFP represents Central Pacific franc and is otherwise called the "franc Pacifique."
- The CFP is part of a currency union. This is when countries join under a single currency or peg their existing currencies to a foreign currency.
- As of February 27, 2022, the CFP franc is pegged to the euro at a rate of 1 EUR = 119.05 XPF.
What Are the CFP Franc Banknotes?
The current CFP franc banknote denominations are in the values of 500, 1,000, 5,000, and 10,000.
Are XPF and CFP the Same?
XPF and CFP are a similar currency. CFP represents Central Pacific franc, though XPF is the symbol the currency trades under on international exchange markets.
Is the CFP Franc Used in France?
The CFP Franc isn't accepted in France. Nonetheless, exchange stands in air terminals and banks can undoubtedly exchange CFP into euros.
What Is the CFP Franc to Dollar Exchange Rate?
The CFP is pegged to the euro and will move similarly the euro does when exchanged with the U.S. Dollar. Nonetheless, the value of the currency is less, and as of February 28, 2022, the CFP is trading at 0.0093 USD for each CFP.
What Are the CFP Franc Coins?
The current CFP franc coin denominations are in values of 1, 2, 5, 20, 50, and 100 XPF.