The Comptoirs Français du Pacifique Franc, also known as the CFP Franc (XPF), is the official currency used in the French overseas collectivities in the Pacific Ocean: French Polynesia, New Caledonia, and Wallis and Futuna.
The CFP Franc is issued and managed by the Institut d’Emission d’Outre-Mer (IEOM), which serves as the central bank for these territories.
Fixed Exchange Rate
The CFP Franc is pegged to the Euro at a fixed exchange rate. This fixed exchange rate is 1 Euro = 119.33174 CFP Francs.
The peg provides stability for the CFP Franc against fluctuations in the foreign exchange market and helps facilitate trade and investment between the French overseas collectivities and the European Union.
Subdivisions and Denominations
The CFP Franc is subdivided into 100 smaller units called centimes.
Coins are issued in denominations of 1, 2, 5, 10, 20, 50, and 100 CFP Francs.
Banknotes are available in denominations of 500, 1,000, 5,000, and 10,000 CFP Francs.
Economies of the Territories
The economies of French Polynesia, New Caledonia, and Wallis and Futuna are characterized by their small size, limited natural resources, and dependence on trade with and support from France.
The main economic sectors in these territories include tourism, agriculture, fishing, and, in the case of New Caledonia, nickel mining.
The fixed exchange rate between the CFP Franc and the Euro helps maintain close economic ties with France and the European Union.
Summary
In summary, the Comptoirs Français du Pacifique Franc, or CFP Franc, is the official currency used in the French overseas collectivities of French Polynesia, New Caledonia, and Wallis and Futuna.
The currency is managed by the Institut d’Emission d’Outre-Mer and is pegged to the Euro at a fixed exchange rate, providing stability against foreign exchange fluctuations.
The CFP Franc is subdivided into centimes and is issued in various banknote and coin denominations.
The economies of the territories using the CFP Franc are small and dependent on trade with France and the European Union, with tourism, agriculture, fishing, and mining as the main economic sectors.