Guinea Franc (GNF)

What Is the Guinea Franc (GNF)?

GNF is the currency truncation for the Guinea franc, the national currency of the Republic of Guinea, a country in West Africa.

The Republic of Guinea was formerly known as French Guinea; today it is frequently alluded to as Guinea-Conakry, which alludes to the name of its capital city to recognize it from its adjoining country Guinea-Bissau. As of May 2022, US $1 is equivalent to approximately 8,810 GNF.

Figuring out the Guinea Franc (GNF)

The GNF is really the subsequent franc utilized as a currency in the country. Guinea was a French province and acquired its independence in 1958. Prior to this, the currency utilized in Guinea was the CFA franc, which — somewhere in the range of 1945 and 1958 — was a truncation for the franc for "states fran\u00e7aises d'Afrique," or former French provinces in Africa.

In 1959, after Guinea's independence, the primary Guinean franc was issued as the country's currency. It was then supplanted by the Guinean syli, which was utilized in the country from 1971 to 1985. In 1985, the second Guinean franc supplanted the syli at par.

Guinea's economy is energized by a rich reserve of minerals, gold, high-grade iron metal, and diamonds. Furthermore, it brags the world's biggest reserves bauxite, which is one of the fundamental exports for the West African nation.

In any case, the country, which has a GDP of $12.3 billion, has confronted stalled economic growth due to political precariousness. Moreover, the Ebola virus dialed back Guinea's economic growth in 2014 and 2015. Notwithstanding, the country's economy contracted at a rate of 2.4% in 2020 versus 2019; the latest year for which official data is accessible.

The GNF and CFA Franc

Guinea used to be part of the franc zone of former French states, utilizing the CFA franc as its official currency until its independence. A considerable lot of its adjoining nations — 14 West African countries altogether, 12 of which are former French settlements — still utilize the CFA franc. Together, they make up the African Financial Community.

The CFA was made in 1945, after World War II, to keep from cheapening money in French provinces. Prior to this, currencies in the French settlements were pegged to the French franc, which was depreciated with the signing of the Bretton Woods agreement in 1944.

At the point when it was presented in 1945, the exchange rate was 1 CFA to 1.70 French francs, shifting from 1 CFA to 2 French francs in 1948. The currency kept parity when France changed its currency from the French franc to the euro. The current fixed exchange rate for the CFA to the euro is 1 euro to 655.96 CFA francs.

Disclaimer

Features

• The Guinea franc (GNF) is the national currency of the African nation of Guinea.
• The country utilized the common area currency the CFA franc until its independence in 1958.
• The GNF unreservedly drifts on the international currency markets.