CFP Franc

Overview

The Central Pacific Franc (CFP) is used by the French overseas collectives: French Polynesia, Wallis and Futuna, and New Caledonia. The currency was later changed to the Pacific Financial Community and is now known as the French Pacific Banking agreement. The currency code is XPF. The currency symbol for the Central Pacific Franc is F. The highest denomination is the 10,000 franc note = 83.8 Euro.

Economy

• New Caledonia has one of the largest economies in the South Pacific. GDP Per capita was 3.1 million CFP Francs (~26,000EUR) in 2009 — larger than New Zealand. Construction makes up 12% of the GDP.
• New Caledonia produces nearly 25% of the world’s nickel supply. Since much of the region is not suitable for agriculture, nearly 20% of New Caledonia’s imports are food products.
• French Polynesia’s GDP was ~US$5.7 billion, the fifth largest economy in the Asia Pacific region. Tourism and financial aid from France makes up much of the GDP.
• French Polynesia’s primary source of exports is black Tahitian pearls, which accounted for 55% of exports in 2008.
• Wallis and Futuna is one of the smaller economies in the region, with GDP per capita of US$12,640 in 2005. The population is heavily dependent on subsistence agriculture, with nearly 80% of residents working on farms, ranches, and in fisheries.
• Wallis & Futuna has a large trade imbalance with no exports in 2007 and only US$122,000 in 2006.
• Financial support from France makes up a large proportion of the GDP for the countries using the CFP Franc.

History

• The US Dollar was often used in French Polynesia and called the Tara.
• The first Central Pacific Franc was introduced in 1945. In the same year the Central Pacific franc was pegged to the USD.
• At the end of September, 1949 the Central Pacific Franc was pegged to the French Franc.
• From 1949 to 1985, the Central Pacific Franc was used in three distinct forms for New Hebrides, French Polynesia, and New Hebrides.
• In 1969, New Hebrides separated their Franc from the Central Pacific franc.
• In 1982, the Vanuatu Vatu became the new currency for the Hebrides.
• From 1999 onwards, a fixed exchange rate exists between the Franc and the Euro — 8.38 Euro = 1,000 XPF (the later abbreviation for the Central Pacific Franc).
• Central Pacific Franc coins are still used in Wallis and Futuna, as well as French Polynesia. The coins are similar to Euro coins and can be used in all the countries that are part of the Eurozone.