Tahiti: discover its unique currency!
Tahiti is an island located in the Pacific Ocean, known for its beaches and crystal clear lagoons. But there is one thing that makes this island even more unique: its currency. Indeed, Tahiti has its own currency, different from the euro or the French franc. In this article, we will discover the history of this unique currency of Tahiti, how it works and how it is linked to France.
From the euro to the CFP franc
Before going into the details of the currency of Tahiti, it is worth understanding the history of the currency of the Pacific region. Before 1945, the currency in Polynesia was based on gold, silver and copper. But after World War II, the United States introduced the dollar to the region as a reserve currency. Later, the region adopted the French franc as its currency, which remained the official currency until 1949.
In 1949, the CFP franc (Comptoirs français du Pacifique) was created. This currency was created to replace the French franc in the region and was used by French Polynesia and the other French territories in the Pacific. The CFP franc was linked to the French franc, with a fixed parity of 1 CFP franc for 0.0555 French francs. In 1960, the parity was revised to 1 CFP franc for 0.0551 French francs.
In 1985, the parity was replaced by a fixed parity with the American dollar to counter the devaluation of the French currency. Since then, the CFP franc has always been linked to the US dollar at a parity of 1 CFP franc for 0.01 US dollar.
The single currency of Tahiti
The single currency of Tahiti is the CFP franc. As mentioned earlier, it is pegged to the US dollar. The CFP franc is issued by the Overseas Emission Institute (IEOM), which is a central bank that also issues the currency for the other French territories in the Pacific.
The CFP franc has been used in Tahiti since 1949. It is considered a stable and reliable currency in the Pacific region. Most businesses in Tahiti accept payment in CFP francs and euros, but it is always advisable to check before making a purchase.
The transition from the CFP franc to the euro
As an overseas territory of France, Tahiti also uses the Euro as its currency. However, the Euro is not widely used in Tahiti and is mainly used in transactions with France.
It is important to note that the parity between the CFP franc and the euro has been fixed at 1 euro for 119.3317 CFP francs since 1999.
Conclusion
In conclusion, the CFP franc is the single currency of Tahiti. It is pegged to the US dollar and is considered a stable currency in the Pacific region. Although the euro is also used in Tahiti, it is not widely used and the parity between the euro and the CFP franc has been fixed since 1999.
As a visitor to Tahiti, it is advisable to familiarize yourself with the CFP franc and check exchange rates before transacting in euros. Tahiti is a dream vacation destination, and understanding Tahiti’s unique currency is an important part of planning your trip.
FAQ’s
Q: Can I use other currencies in Tahiti?
AT: In principle, most businesses in Tahiti accept payment in CFP francs and euros. However, it is advisable to check with the merchant before making a purchase.
Q: Is the parity between the CFP franc and the US dollar fixed?
AT: Yes, the parity between the CFP franc and the US dollar is fixed at 1 CFP franc for 0.01 US dollar.
Q: Can we change CFP franc in mainland France?
AT: Yes, it is possible to exchange CFP francs in mainland France, but exchange rates may vary. It is recommended to check the rates with exchange offices before traveling to mainland France.
References
1. “The CFP Franc”, Investopedia, https://www.investopedia.com/terms/c/cfp-franc.asp
2. “French Polynesia”, Bank of France, https://www.banque-france.fr/le-systeme-monetaire-et-financier/polynesie-francaise
3. “ICFP”, Overseas issuing institute, https://www.ieom.fr/spip.php?rubrique57
4. “What is the currency used in Tahiti?”, Tahiti Nui Travel, https://www.tahitinuitravel.com/moine-tahiti/