Issuing house of overseas
The Issuing house of overseas (IEOM) is a French public corporation Pacifique which has the privilege of the emission of the currency in the three French territories.
The Issuing house of Overseas (IEOM) was created by the French government in 1967 to succeed the Banque of Indo-China to which had been entrusted towards the end of the 19th century, the privilege of the emission in the French counters of Asia and of the Pacifique.
Thus the Bank of Indo-China began its operations with Noumea in 1888 and with PAPEETE in 1905.
A law of the September 25th 1948 withdrew at the Bank of Indo-China the privilege of the emission without a solution of substitution being installation. The Bank of Indo-China thus continued to emit the currency in the French territories of the Pacific until the creation of the Issuing house of overseas in 1967.
The creation of the IEOM, national public corporation, illustrated the will of the State more directly to control the monetary policy followed in these territories, to reinforce the fastening of the Franc CFP with the national currency and to promote a credit policy adapted to the local economic conditions. It will be noted that the IEOM intervened temporarily in New Hebrides (today Vanuatu) until the independence of the Franco-British condominium and with Mayotte of 1976 to 1998.
frankly CFP
The currency having legal tender in New Caledonia, French Polynesia and in the territory of Wallis-and-Futuna is the Franc CFP.
The frank CFP was created by a decree of the December 26th 1945 at the time of one of the devaluations of the Franc French. It was then a question of allowing the maintenance of the parity of the currency of these territories with the American dollar which had taken a very important place in their economy during the Second world war.
Rene Pleven, Minister for Finance of the time justified the decision of the government of the Général de Gaulle in these terms: “Showing its generosity and its satisfying, the metropolis not wanting to impose on his/her remote daughters the consequences of her own poverty, different courses for their currency fix”.
So the parity of the frank CFP with the American dollar will be preserved until in 1949 on the basis of 1 US dollar = 49,6 F CFP whereas its parity with the metropolitan franc is modified with each devaluation of the French franc compared to the American dollar.
The parity of the frank CFP will evolve/move thus in the following way:
- December 26th, 1945
-
January 26th, 1948
-
October 18th, 1948
-
April 27th, 1949
-
September 20th, 1949
It is on this date which the French government decided that the frank CFP would preserve from now on a fixed parity with the metropolitan franc. Thus, starting from the monetary change occurred in France on January 1st 1960, 100 F CFP = 5,50 FRF.
This situation will perdura until January 1st 1999, date on which the euro became the official currency of France. The value of the French franc being fixed on the basis of 1 € = 6,55957 FRF, the new parity of frank CFP (XPF) is the result of following calculation:
1.000 XPF = 55/6,55957 = 8,38469 euros rounded with 8,38 euros
The official value of the frank CFP is thus from now on of: 1.000 francs CFP = 8,38 euros
The frank CFP did not undergo a devaluation because of fixing of the new parity with the euro and its convertibility remains guaranteed by the Trésor French.
This parity was fixed by the French government pursuant to the “Protocol on France”, annexed to the Traité of Maastricht which stipulates that “France will preserve the privilege to emit currencies in its overseas territories according to methods established by its national legislation and it will only be entitled to determine the parity of the frank CFP.
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