Misplaced Pages

#837162

39-852: The CFP franc was created in December 1945, together with the CFA franc , used in Africa, because of 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

78-570: A combined GDP of US$ 114.3 billion (as of 2023). In 1975, Central African CFA banknotes were issued with an obverse unique to each participating country, and common reverse, in a fashion similar to euro coins . Equatorial Guinea , the only former Spanish colony in the zone, adopted the CFA in 1984. Euro coins Too Many Requests If you report this error to the Wikimedia System Administrators, please include

117-490: A combined population of 210.4 million people (as of 2023), and a combined GDP of US$ 313.7 billion (as of 2023). Between 1945 and 1958, CFA stood for Colonies françaises d'Afrique ("French colonies of Africa"); then for Communauté française d'Afrique (" French Community of Africa") between 1958 (establishment of the French Fifth Republic ) and the independence of these African countries at

156-477: A new series of banknotes, and the older notes were withdrawn from circulation on 30 September of that year (they can be exchanged indefinitely at IEOM offices). Before the French regulated the currency on Tahiti , French Polynesia, traders often used dollars. The word dollar became tārā (often written without accents as tara , or tala ), and this term is still used among native Tahitian and local Chinese traders as an unofficial unit, worth 5 francs. Thus for

195-693: A price of 200 francs, one would say tārā e maha-ʻahuru (40 tārā) in Tahitian . The currency of Samoa is also called the tālā . CFA franc The CFA franc ( French : franc CFA , [fʁɑ̃ seɛfɑ] ) is the name of two currencies used by 210 million people (as of 2023) in fourteen African countries: the West African CFA franc (where "CFA" stands for Communauté Financière Africaine , i.e. "African Financial Community" in English), used in eight West African countries , and

234-635: Is issued by the BEAC ( Banque des États de l'Afrique Centrale , i.e., "Bank of the Central African States"), located in Yaoundé , Cameroon , for the six countries of the CEMAC ( Communauté Économique et Monétaire de l'Afrique Centrale , i.e., " Economic and Monetary Community of Central Africa "): These six countries have a combined population of 62.8 million people (as of 2023), and

273-630: Is known in French as the Franc CFA , where CFA stands for Communauté financière d'Afrique ('Financial Community of Africa') or Communauté Financière Africaine ("African Financial Community"). It is issued by the BCEAO ( Banque Centrale des États de l'Afrique de l'Ouest , i.e., "Central Bank of the West African States"), located in Dakar , Senegal , for the eight countries of

312-451: 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, thereby making it easier for them to import goods from France (and simultaneously making it harder for them to export goods to France). French officials presented the decision as an act of generosity. René Pleven ,

351-537: The Central African CFA franc (where "CFA" stands for Coopération Financière en Afrique centrale , i.e. "Financial Cooperation in Central Africa" in English), used in six Central African countries. Although separate, the two CFA franc currencies have always been at parity and are effectively interchangeable. The ISO currency codes are XAF for the Central African CFA franc and XOF for

390-506: The French Minister of Finance , was quoted as 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 was created with a fixed exchange rate versus the French franc . This exchange rate was changed only twice, in 1948 and in 1994 (besides nominal adaptation to

429-565: The West African CFA franc . Both CFA francs have a fixed exchange rate (peg) to the euro guaranteed by France: €1 = F.CFA 655.957 exactly. To ensure this convertibility guarantee, member countries were required to deposit half of their foreign exchange reserves with the French Treasury, but this requirement was dropped in 2019 (effective in 2021) for the West African CFA franc. This requirement remains unchanged for

SECTION 10

#1732783648838

468-625: The eurozone . Until 2021, the IEOM issued two sets of CFP coins in denominations of 1, 2, 5, 10, 20, 50, and 100 francs. The New Caledonian series is marked with "Nouvelle Caledonie" on the reverse side and was circulated mainly in New Caledonia and Wallis and Futuna. The French Polynesian series is marked "Polynesie Française" and circulated in French Polynesia. The reverse designs depicted landscapes, plants, or animals typical of

507-415: The obverse side was identical, the reverse side was inscribed with either Nouvelle-Calédonie or Polynésie française , and used different designs depicting local landscapes, flora and fauna. However, both sets of coins could be used interchangeably in all three French territories. The initials CFP originally stood for Colonies françaises du Pacifique ( lit.   ' French colonies of

546-479: The 10,000 franc banknote was introduced, which was common to both French Polynesia and New Caledonia. These were followed, between 1992 and 1995, by new 500, 1,000, and 5,000 franc banknote designs common to all of the French Pacific Territories. One side of the banknote shows landscapes or historical figures from New Caledonia, the other from French Polynesia. In January 2014, the IEOM issued

585-630: The CFA franc since its introduction, despite the fact that they had never been French colonies. In 1998, in anticipation of Economic and Monetary Union of the European Union , the Council of the European Union addressed the monetary agreements France had with the CFA Zone and Comoros and ruled that: The currency has been criticized for making national monetary policy for the developing countries of French West Africa all but impossible, since

624-674: The CFA franc, and criticism continued from various African organizations. On 21 December 2019, President Alassane Ouattara of the Ivory Coast and President Emmanuel Macron of France announced an initiative to replace the West African CFA Franc with the Eco . Subsequently, a reform of the West African CFA franc was initiated. In May 2020, the French National Assembly agreed to end the French engagement in

663-578: The CFA franc: the West African CFA franc ( ISO 4217 currency code XOF), and the Central Africa CFA franc ( ISO 4217 currency code XAF). They are distinguished in French by the meaning of the abbreviation CFA. These two CFA francs have the same exchange rate with the euro (1 euro = 655.957 XOF = 655.957 XAF), and they are both guaranteed by the French treasury ( Trésor public ), but the two currencies are only legal tender in their respective member countries. The West African CFA franc ( XOF )

702-514: The CFA's value is pegged to the euro (whose monetary policy is set by the European Central Bank ). Others disagree and argue that the CFA "helps stabilize the national currencies of Franc Zone member-countries and greatly facilitates the flow of exports and imports between France and the member-countries". The European Union 's 2008 assessment of the CFA's link to the euro noted that "benefits from economic integration within each of

741-453: The CFP franc (XPF) vs. the French franc / euro is unchanged since 1949. In 1949, New Caledonia and French Polynesia (then called French Oceania) began to issue coins with identical obverse sides, but distinct reverse side designs. They could be used interchangeably in all three French territories, in a similar way to the use of euro coins (with distinct national obverse sides) in all countries of

780-762: 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. The CFP franc has been issued by the Institut d'émission d'outre-mer (IEOM, lit.   ' Overseas Issuing Institute ' ) since 1967. The IEOM has its headquarters in Paris . The currency

819-546: The Central African CFA franc, which wasn't reformed in 2019 (the reform concerned only the West African CFA franc). The currency has been criticized for restricting the sovereignty of the African member states, effectively putting their monetary policy in the hands of the European Central Bank . Others argue that the CFA "helps stabilize the national currencies of Franc Zone member-countries and greatly facilitates

SECTION 20

#1732783648838

858-565: The Pacific ' ). This was later changed to Communauté financière du Pacifique ( lit.   ' Pacific Financial Community ' ), and then Change franc Pacifique ( lit.   ' Pacific Franc Exchange ' ), from which the XPF currency code was derived. An ordinance of 15 September 2021, which entered into force on 26 February 2022, defines the name CFP franc as le franc des collectivités françaises du Pacifique ( lit.   '

897-521: The UEMOA ( Union Économique et Monétaire Ouest Africaine , i.e., " West African Economic and Monetary Union "): These eight countries have a combined population of 147.6 million people (as of 2023), and a combined GDP of US$ 199.4 billion (as of 2023). The Central Africa CFA franc ( XAF ) is known in French as the Franc CFA , where CFA stands for Coopération financière en Afrique centrale ("Financial Cooperation in Central Africa"). It

936-418: The West African CFA franc. The countries using the currency will no longer have to deposit half of their foreign exchange reserves with the French Treasury. The broader Economic Community of West African States (ECOWAS), which includes the members of UEMOA, plans to introduce its own common currency for its member states by 2027, for which they have also formally adopted the name Eco . On April 25, 2023,

975-462: The beginning of the 1960s. Since independence, CFA is taken to mean Communauté Financière Africaine (African Financial Community) or Coopération financière en Afrique centrale (see Institutions below). The CFA franc was created on 26 December 1945, along with the CFP franc . The reason for their creation was the weakness of the French franc immediately after World War II . When France ratified

1014-483: The coins features a single wavy-line design, with the IEOM issuer and year engraved around the edge, and the denomination value. Each coin denomination has a single reverse design depicting landscapes, artefacts, flora and fauna from all three territories. The IEOM began issuing banknotes in New Hebrides in 1965, and in New Caledonia and French Polynesia in 1969, in 500, 1,000, and 5,000 franc denominations. In 1986

1053-467: The flow of exports and imports between France and the member-countries". On 22 December 2019, it was announced that the West African currency would be reformed and replaced by an independent currency to be called Eco . In May 2020, the French National Assembly agreed to end the French engagement in the West African CFA franc, including the foreign reserve deposit requirements, thereby facilitating

1092-592: The franc of the French Communities of the Pacific ' ). In 2021, a new series of smaller coins were introduced, with a single set of designs common to all three territories. The 1 and 2 franc coins were discontinued and a new, bimetallic 200 franc coin introduced. The old coins were withdrawn in January 2023. The 1960 and 1999 events are merely changes in the currency in use in France; the relative value of

1131-409: The initials of the issuing central bank (IEOM) from 1972. The 1, 2, and 5 franc coins were made from aluminium alloy , the 10, 20, and 50 franc coins from nickel ( cupronickel after 2005), and the "gold" 100 franc coin from nickel bronze (copper nickel aluminium alloy after 2005). In September 2021 a new single set of coins was released, common to all three French Pacific Territories, to replace

1170-517: The name of the capital cities ( Papeete and Nouméa , respectively) printed on the reverse side of the notes. In 1969, the New Hebrides franc was separated from the CFP franc, and was replaced by the Vatu in 1982 after the establishment in 1980 of the Republic of Vanuatu . The largest denomination 10,000 CFP franc banknote (€83.80) was first issued in 1986, and omitted the capital city name. The city

1209-630: The new French franc in 1960 and the Euro in 1999). Exchange rate: The 1960 and 1999 events merely reflect changes of currency in use in France: the actual relative value of the CFA franc versus the French franc/euro only changed in 1948 and 1994. Over time, the number of countries and territories using the CFA franc has changed as some countries began introducing their own separate currencies. A couple of nations in West Africa have also chosen to adopt

CFP franc - Misplaced Pages Continue

1248-470: The region, as well as the coin denomination. The obverse side, common to both regions, included the words Republique Français ( lit.   ' French Republic ' ) and depicted an allegorical representation of Minerva the goddess of wisdom on the 1, 2, and 5 franc coins, or Marianne , symbol of the French Republic, on the higher denominations. The obverse also included the mint year and

1287-421: 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 other French colonial currencies were set at a fixed exchange rate with the French franc. However,

1326-542: The subject of the CFA franc was discussed at the ministerial meeting of the Economic and Monetary Community of Central Africa (CEMAC) and France. The French perceive the guarantee provided to the CFA franc, and the assurance of its convertibility, as a pillar of economic stability for the region. France remains “open” and “available” to CEMAC proposals to reform monetary cooperation in Central Africa, as has happened in West Africa. [1] There are two different currencies called

1365-696: The transition to the Eco. Despite initial plans for a monetary union by late 2020, setbacks including the COVID-19 pandemic , global geopolitical uncertainties, and failure to meet criteria resulted in a postponement until 2027. CFA francs are used in fourteen countries: twelve nations formerly ruled by France in West and Central Africa (excluding Guinea and Mauritania , which withdrew), plus Guinea-Bissau (a former Portuguese colony), and Equatorial Guinea (a former Spanish colony). These fourteen countries have

1404-593: The two monetary unions of the CFA franc zone, and even more so between them, remained remarkably low" but that "the peg to the French franc and, since 1999, to the euro as exchange rate anchor is usually found to have had favourable effects in the region in terms of macroeconomic stability". Critics point out that the currency is controlled by the French treasury, and in turn African countries channel more money to France than they receive in aid and have no sovereignty over their monetary policies. In January 2019, Italian ministers accused France of impoverishing Africa through

1443-416: The two older sets of coins. The 1 and 2 franc coins were discontinued, and a new bimetallic 200 franc coin was issued. The old coins were withdrawn from circulation in January 2023. Since the lowest denomination in use is now the 5 franc coin, cash transactions are now subject to rounding: The rounding rule does not apply to electronic transactions, which are still completed to the franc. The obverses of all

1482-532: Was also omitted from 500 franc banknotes issued after 1992, and the 1,000 and 5,000 franc banknotes issued after 1995. In 2014, a single set of new banknote designs and smaller sizes were introduced, identical in both New Caledonia and French Polynesia. One side of the banknotes shows landscapes or historical figures from French Polynesia, the other from New Caledonia. Before 2023, the coins were issued in two sets, one each for New Caledonia and French Polynesia, in 1, 2, 5, 10, 20, 50, and 100 franc denominations. While

1521-593: Was initially issued in three distinct forms for French Polynesia , New Caledonia and the New Hebrides (see French Polynesian franc , New Caledonian franc and New Hebrides franc ). Wallis and Futuna used the New Caledonian franc. Banknotes were first issued in 500, 1,000 and 5,000 franc denominations. 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

#837162