The CFP Franc (XPF) is a unique currency that serves as a monetary link between France and several French overseas territories in the Pacific, namely French Polynesia, New Caledonia, and Wallis and Futuna. Introduced in 1945, the XPF was part of an initiative by France to ensure economic stability in its overseas territories post-World War II. The currency was initially pegged to the French franc and, since the euro’s introduction, it’s pegged to the euro, maintaining close ties to European economic dynamics despite the vast geographical distance.

What makes the XPF particularly intriguing is its division into two separate monetary systems: one specific to French Polynesia (CFP) and another to New Caledonia and Wallis and Futuna (CFP/NF). This division underscores the unique cultural and economic distinctions within these territories, although both systems maintain the same value against the euro. The name “CFP Franc” formerly stood for “Colonies Françaises du Pacifique” (French Pacific Colonies), but this has been modernized to “Change Franc Pacifique” (Pacific Franc Exchange), revealing a shift from colonial undertones to one of regional economic integration.