What Currency Does French Polynesia Use?

French Polynesia, that siren call of turquoise lagoons and volcanic peaks, operates on the French Pacific Franc (XPF), also known as the CFP Franc. This currency has been the official legal tender since 1945 and is intricately linked to the Euro, adding a layer of economic stability to this idyllic paradise.

Understanding the CFP Franc

Think of the CFP Franc not just as the money you’ll use to buy that overwater bungalow cocktail, but as a tangible representation of French Polynesia’s unique place in the world. It stands for “Change Franc Pacifique” (Pacific Franc Exchange), though historically it stood for “Colonies Françaises du Pacifique” (French Colonies of the Pacific). This change reflects the evolving political landscape while retaining the currency’s connection to its historical roots.

The XPF is issued by the Institut d’Emission d’Outre-Mer (IEOM), which acts as the central bank for French Polynesia, New Caledonia, and Wallis and Futuna. It’s important to recognize that while these territories all utilize the CFP Franc, their economies are distinct, making the IEOM’s role crucial in managing monetary policy across this diverse region.

Coins and Banknotes of the CFP Franc

The CFP Franc comes in both coin and banknote denominations.

• Coins: You’ll find coins in denominations of 1, 2, 5, 10, 20, 50, and 100 francs. The designs are often simple yet elegant, frequently featuring local flora and fauna.

• Banknotes: Banknotes are available in 500, 1,000, 2,000, 5,000, and 10,000 franc denominations. The banknotes often depict scenes of Polynesian culture and landscapes, making them a beautiful souvenir in their own right.

The Fixed Exchange Rate: XPF to EUR

One of the most crucial aspects of the CFP Franc is its fixed exchange rate with the Euro (EUR). Since 1999, the exchange rate has been firmly set at 1 EUR = 119.33 XPF. This fixed rate provides stability and predictability for businesses and travelers alike. It’s essential to remember this figure when budgeting for your trip to French Polynesia.

Using Credit Cards and ATMs

While cash is widely accepted, credit cards are commonly used in larger establishments, hotels, restaurants, and tourist shops. Visa and Mastercard are generally the most widely accepted. However, smaller businesses, especially in more remote islands, may prefer cash.

ATMs are available in major towns and tourist areas, allowing you to withdraw CFP Francs directly. Be aware that your bank may charge international transaction fees, so it’s wise to check beforehand. It’s generally a good idea to arrive with some CFP Francs already in hand for immediate expenses like taxi fares or smaller purchases.

Beyond the Currency: Economic Context

Understanding the currency also means understanding its economic context. The CFP Franc’s stability, derived from its peg to the Euro, is essential for French Polynesia’s economy, which relies heavily on tourism, black pearls, and agricultural exports. This stability helps attract foreign investment and supports the local business environment.

Frequently Asked Questions (FAQs) about the CFP Franc

Here are some frequently asked questions to give you a comprehensive understanding of the currency situation in French Polynesia:

1. Can I use Euros directly in French Polynesia?

While some larger establishments catering to tourists might accept Euros, it’s strongly discouraged. The exchange rate offered will likely be unfavorable, and you may encounter confusion. It’s far better to exchange Euros for CFP Francs upon arrival or withdraw CFP Francs from an ATM.

2. Where is the best place to exchange currency in French Polynesia?

The best place to exchange currency depends on convenience and exchange rates. Banks generally offer the most competitive rates, but their hours may be limited. Currency exchange bureaus at the airport or in major tourist areas are readily accessible but often charge higher fees. ATMs usually provide a reasonable exchange rate, but remember to factor in potential bank fees.

3. Should I exchange currency before I arrive in French Polynesia?

It’s usually not necessary to exchange currency before arriving. ATMs are readily available at the airport and in major towns. However, having a small amount of CFP Francs on hand for initial expenses can be helpful.

4. Are traveler’s checks accepted in French Polynesia?

Traveler’s checks are becoming increasingly rare and are generally not recommended. You’ll likely face difficulty finding a place to cash them, and the fees involved can be substantial.

5. Is tipping customary in French Polynesia?

Tipping is not customary in French Polynesia. Service charges are often included in restaurant bills and hotel rates. However, if you receive exceptional service, you can certainly leave a small tip as a gesture of appreciation.

6. What happens if I have leftover CFP Francs after my trip?

You can exchange your CFP Francs back to your home currency at the airport before departure or at a currency exchange bureau in your home country. However, be aware that the exchange rate may not be as favorable as when you initially exchanged your currency.

7. Are there any hidden fees I should be aware of when using my credit card?

Be aware of potential international transaction fees charged by your bank. Check with your bank before your trip to understand their fee structure. Some credit cards offer no foreign transaction fees, which can save you money.

8. Can I use my debit card in French Polynesia?

Debit cards are generally accepted at ATMs for withdrawing CFP Francs. However, you may be subject to international transaction fees. Check with your bank for details. Using a debit card for purchases may not be as widely accepted as credit cards.

9. What is the cost of living like in French Polynesia compared to other destinations?

French Polynesia is generally considered a relatively expensive destination, particularly for tourists. Accommodation, food, and activities can be pricey, especially in popular areas like Bora Bora. Budget accordingly and consider exploring less touristy islands for more affordable options.

10. Are there any specific scams I should be aware of related to currency?

As with any tourist destination, be aware of potential scams. Be cautious of unofficial currency exchange offers, and always count your money carefully after a transaction. Use reputable ATMs and avoid withdrawing large sums of cash in public places.

11. How does the CFP Franc impact the local economy?

The CFP Franc’s fixed exchange rate provides stability, which is crucial for an economy heavily reliant on tourism. However, it also means that French Polynesia has limited control over its monetary policy, which can impact its ability to respond to economic shocks.

12. Are there any alternatives to using the CFP Franc, such as digital currencies?

While digital currencies are gaining popularity globally, they are not widely accepted in French Polynesia at this time. It’s best to rely on CFP Francs for most transactions. As technology evolves, this may change in the future, but for now, the CFP Franc remains the dominant currency.

In conclusion, the CFP Franc (XPF) is the official currency of French Polynesia. Understanding its relationship with the Euro, its denominations, and how to access it through ATMs and credit cards is essential for a smooth and enjoyable trip to this beautiful corner of the world. By planning ahead and being mindful of exchange rates and fees, you can focus on experiencing the magic of French Polynesia without currency concerns overshadowing your adventure.