XPF Currency: The Forgotten Franc That Still Holds Value in the Pacific

XPF: A Currency That Survived Decolonization

What Is the CFP Franc (XPF)?

The CFP Franc, abbreviated as XPF, is the official currency of several French overseas collectivities in the Pacific: French Polynesia, New Caledonia, and Wallis and Futuna.

The acronym CFP originally stood for "Colonies Françaises du Pacifique" (French Pacific Colonies). Over time, it evolved into "Change Franc Pacifique," as part of France’s post-colonial rebranding effort. Despite this, the currency remains one of the clearest financial remnants of colonial influence in the modern world.

How XPF Works in Practice

Fixed to the Euro, Not Floating

Since 1999, the CFP franc has been pegged to the euro, at a rate of 1 EUR = 119.3317 XPF, managed by the Institut d'émission d'outre-mer (IEOM). This fixed exchange rate keeps the currency stable, providing confidence to both residents and foreign investors.

Unlike floating currencies in Asia-Pacific, the XPF doesn’t fluctuate wildly. That’s both a strength and a limitation.

Why Not Just Use the Euro?

Although the euro is widely used in France, XPF persists for local sovereignty, pricing convenience, and to avoid inflationary spillover from mainland Europe.

Many local businesses, especially in Nouméa and Papeete, still quote prices in XPF, even when accepting euros. This dual pricing system reflects both economic autonomy and political attachment to France.

Implications for Business and Tourism

For foreign traders or tourists in French Polynesia or New Caledonia, here’s what matters:

• Currency exchange: XPF isn’t traded globally. You can’t get it outside these territories. Exchange is only available on arrival or through local banks.
• Digital payments: While XPF cards and mobile banking apps exist, international platforms like PayPal or Revolut do not support XPF.
• Import/export: All overseas transactions are converted through euros, meaning a two-step conversion when dealing with USD, AUD, or JPY.

So while XPF may seem niche, understanding it is critical for businesses working with Pacific French territories.

Why the CFP Franc Still Exists

From a financial logic perspective, XPF should have been phased out years ago. But currencies aren’t just about economics—they’re about trust, identity, and autonomy.

• Political status: These territories aren't independent, but they aren’t French departments either. Their intermediate status demands an intermediate currency.
• Local pricing: Wages, taxes, and pensions are calculated in XPF, making a sudden switch disruptive.
• Economic stability: The peg to the euro keeps inflation in check while allowing the Pacific territories to set their own financial policies within limits.

In this context, XPF isn’t just a currency—it’s a tool of controlled decentralization.

Final Reflection — The Future of XPF in a Eurozone World

As global currencies consolidate and digital wallets rise, the CFP franc faces an uncertain but symbolic future.

• Will it one day merge fully into the euro system?
• Or will it remain a peculiar holdover from a past that these territories haven’t fully left behind?

Either way, the story of XPF shows us how currencies are not just tools of exchange—but mirrors of history, sovereignty, and compromise.

For now, XPF remains legal tender in paradise—and a quiet reminder that not all financial systems are born from efficiency alone.