The Pacific currency born from a French minister's desire to show generosity

Cultures · Published 1 October 2026 Swipe more like this →

In short: In 1945, as the French franc collapsed following World War II, a new currency was forged to protect overseas territories from the chaos of the metropole. The CFP franc was not just a tool of finance, but a strategic shield designed to insulate the Pacific from the economic volatility of a recovering France.

The CFP franc was established in December 1945, a direct response to the extreme weakness of the French franc immediately following the Second World War. While the French franc underwent significant devaluation to fix its rate with the US dollar, the French minister of finance, René Pleven, sought to spare the overseas territories the consequences of metropolitan poverty. Consequently, the CFP franc was initially pegged to the US dollar rather than the French franc, a decision influenced by the economic shifts caused by the war in the Pacific.

This unique arrangement lasted until September 1949, when the currency was finally linked to the French franc. Since then, the relative value of the CFP franc has remained stable against the French currency, even through the transition from the 'old' French franc to the 'new' franc in 1960 and the adoption of the euro in 1999. Today, the exchange rate is fixed at 1,000 XPF to €8.38.

The currency's identity has also evolved through political shifts. Originally standing for 'Colonies françaises du Pacifique,' its name was updated to 'Communauté financière du Pacifique' and later 'Change franc Pacifique.' As of 2022, it is officially known as the franc des collectivités françaises du Pacifique, serving French Polynesia, New Caledonia, and Wallis and Futuna. While the currency is issued by the Institut d'émission d'outre-mer (IEOM) in Paris, it maintains a distinct local character, with banknotes featuring landscapes and historical figures from the various territories.

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