Editing CFP franc (section)

== History ==

=== 1945–1949 ===

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 [[World War II|Second World War]]. When France ratified the [[Bretton Woods system|Bretton Woods Agreement]] in December 1945, the French franc was devalued in order to set a fixed exchange rate with the [[United States dollar|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."<ref>[https://books.google.com/books?id=wMcgAQAAMAAJ&q=%22In+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.%22 ''International Currency Review''], Volume 31, Currency Journals Limited, 2006, page 17</ref> The other French 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 ''[[Institut d'émission d'outre-mer]]'' (IEOM, {{lit.|Overseas Issuing Institute}}) 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]] (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 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 [[Vanuatu vatu|Vatu]] in 1982 after the establishment in 1980 of the [[Vanuatu|Republic of Vanuatu]].

=== Since 1985 ===

The largest denomination 10,000 CFP franc banknote (€83.80) was first issued in 1986, and omitted the capital city name. The city 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 the [[Obverse and reverse|obverse]] side was identical, the [[Obverse and reverse|reverse]] side was inscribed with either {{lang|fr|Nouvelle-Calédonie}} or {{lang|fr|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 {{lang|fr|Colonies françaises du Pacifique}} ({{lit.|French colonies of the Pacific}}). This was later changed to {{lang|fr|Communauté financière du Pacifique}} ({{lit.|Pacific Financial Community}}), and then {{lang|fr|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 {{lang|fr|le franc des collectivités françaises du Pacifique}} ({{lit.|the franc of the French Communities of the Pacific}}).<ref>{{Cite web |url=https://www.legifrance.gouv.fr/jorf/id/JORFTEXT000044060532 |title=Ordonnance n° 2021-1200 du 15 septembre 2021 relative aux titres Ier et II de la partie législative du livre VII du code monétaire et financier |author=<!--Not stated--> |date=15 September 2021 |website=www.legifrance.gouv.fr |publisher=[[Légifrance]] |language=fr |trans-title=Ordinance No. 2021-1200 of September 15, 2021 relating to Titles I and II of the legislative part of Book VII of the Monetary and Financial Code |access-date=19 February 2023}}</ref>

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.

=== Historical exchange rates ===

* '''26 December 1945 to 20 September 1949''' – Fixed exchange with the US dollar at US$1 = F.CFP&nbsp;49.60. Non-fixed exchange rate with the old French franc, which devalued four times vs. the US dollar. From F.CFP&nbsp;1 = FF&nbsp;2.40  (FF = French franc) in December 1945, the exchange rate reached F.CFP&nbsp;1 = FF&nbsp;5.50 in September 1949.
* '''21 September 1949 to 31 December 1959''' – Fixed exchange rate with the old French franc at F.CFP&nbsp;1 = FF&nbsp;5.50
* '''1 January 1960 to 31 December 1998''' – Fixed exchange rate with the French franc at F.CFP&nbsp;1 = NF&nbsp;0.055 or NF&nbsp;1 ≈ F.CFP&nbsp;18.182 (1 January 1960: 100 'old' French francs became 1 'new' franc)
* '''1 January 1999 onward''' – Fixed exchange rate with the euro at F.CFP&nbsp;1,000 = €8.38 or €1 ≈ F.CFP&nbsp;119.332 (1 January 1999: euro replaced FRF at the rate of 6.55957 FRF for 1 euro)
**The calculation to the euro was <math>0.055 \div 6.55957 \times 1000 \approx 8.3847</math>, which meant that 1000 XPF was not worth exactly €8.38 prior to the introduction of the euro. The value of 1000 XPF in euros was instead rounded to the nearest euro cent upon the introduction of the euro.

The 1960 and 1999 events are merely changes in the currency in use in France; the relative value of the CFP franc (XPF) vs. the French franc / euro is unchanged since 1949.