The CFP franc is the currency used in the French overseas collectivities of
French Polynesia, New Caledonia and Wallis and Futuna. The initials CFP
originally stood for Colonies Françaises du Pacifique. This was later changed to
Communauté Financière du Pacifique and then to the present term, Change Franc
Pacifique. The ISO 4217 currency code is XPF.
History = 1945–1949=
The CFP franc was created in December 1945, together with the CFA franc, 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.
= 1949–1985= The CFP franc has been issued by the
IEOM since 1967. The IEOM has its headquarters in Paris.
The currency was initially issued in three distinct forms for French
Polynesia, New Caledonia and the New Hebrides. Wallis and Futuna used 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 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. = Since 1985=
The new highest denomination 10,000 CFP franc banknote issued on 1 October 1986,
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
1995, 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, 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 Nouvelle-Calédonie in New Caledonia and
in Wallis and Futuna, and with the name Polynésie française 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.
= 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 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, 1999 onward – Fixed exchange
rate with the euro at 1,000 XPF = 8.38 euro
The 1960 and 1999 events are merely changes in the currency in use in
France; the relative value of the CFP franc vs. the French franc / euro is
unchanged since 1949. Coins
In 1949, New Caledonia and what was then called French Oceania 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.
Banknotes The IEOM began issuing banknotes in New
Hebrides in 1965, and in New Caledonia and French Polynesia in 1969. On 1
October 1986, 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 1995, 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.
On January 6, 2014, the IEOM has unveiled designs for a new series of
banknotes. The new notes were issued on January 20. The older issues will
circulate in parallel to the new series until the former will lose legal tender
status on September 30, but can be exchanged indefinitely at the Institut
d’Emission d’Outre-Mer offices. Tārā
Before the French regulated the currency on Tahiti, French Polynesia, traders
often used dollars. The word “dollar” became tārā, 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-ʻahuru in
Tahitian. The currency of Samoa is also called the tālā.
See also CFA franc
Currencies related to the euro French Polynesian franc
Monetary union New Caledonian franc
New Hebrides franc References
External links Discover the Franc Pacifique currency