10 francs cfp – French Pacific Territories

In 2021, the currency situation in France's Pacific territories—primarily French Polynesia, New Caledonia, and Wallis and Futuna—remained defined by their use of the CFP franc (XPF). This currency, created in 1945, is issued by the Institut d'émission d’outre-mer (IEOM) and is pegged to the euro at a fixed and guaranteed exchange rate (€1 = XPF 119.3317). This arrangement provides significant monetary stability, shielding these geographically remote economies from exchange rate volatility and facilitating trade and financial flows with mainland France and the Eurozone, which are their primary economic partners.

The year 2021 saw ongoing political and economic debates surrounding this monetary framework, particularly in New Caledonia. Following the third and final independence referendum scheduled for December 2021 (later postponed to December 2022 due to COVID-19), discussions about the territory's future sovereignty inherently raised questions about its post-independence currency. Pro-independence groups had historically criticized the CFP franc as a symbol of colonial dependence, while economic pragmatists highlighted the benefits of stability. In French Polynesia, the fixed peg provided a buffer as the territory cautiously reopened to tourism, a sector devastated by the pandemic, though it also meant monetary policy was entirely directed from Europe with no local flexibility.

Overall, the 2021 currency situation was one of entrenched stability under the CFP franc system, but with underlying tensions. The system successfully provided a predictable financial environment for post-pandemic recovery, ensuring inflation control and access to capital. However, in the background, especially in New Caledonia, the fundamental question persisted: whether the long-term future would involve maintaining this guaranteed link to the euro or pursuing a national currency as part of a potential sovereign identity.