Does New Caledonia Use Euro

The Currency of New Caledonia: The CFP Franc

How is the CFP Franc Related to the Euro?

The CFP Franc (CFP) or XPF is the local currency of New Caledonia. It is also used in French Polynesia and Wallis and Futuna. The CFP Franc is pegged to the Euro, meaning that its value is fixed against the Euro. This means that the CFP Franc will always be worth a certain amount of Euros.

History of the CFP Franc

The CFP Franc was introduced in 1945 to replace the French Pacific Franc. It was initially pegged to the French Franc, but was later pegged to the Euro in 1999. The CFP Franc is issued by the Institut d'émission d'outre-mer (IEOM), which is a French government agency.

Benefits of the CFP Franc

The CFP Franc has a number of benefits, including:

• Stability: The CFP Franc is pegged to the Euro, which makes it a very stable currency.
• Convertibility: The CFP Franc is fully convertible into Euros, which makes it easy to use for international travel and business.
• Low inflation: Inflation in New Caledonia is very low, which helps to keep the CFP Franc's value stable.