What Is the Guinea Franc (GNF)?
GNF is the overseas cash abbreviation for the Guinea franc, the national overseas cash of the Republic of Guinea, a country in West Africa.
The Republic of Guinea was once up to now known as French Guinea; in recent times it is frequently referred to as Guinea-Conakry, which refers to the identify of its capital the city to tell apart it from its neighboring country Guinea-Bissau. As of May 2022, US $1 is equal to roughly 8,810 GNF.
Key Takeaways
- The Guinea franc (GNF) is the national overseas cash of the African nation of Guinea.
- The country used the common house overseas cash the CFA franc until its independence in 1958.
- The GNF freely floats on the international overseas cash markets.
Understanding the Guinea Franc (GNF)
The GNF is in reality the second franc used as a overseas cash throughout the country. Guinea was once a French colony and received its independence in 1958. Prior to this, the overseas cash used in Guinea was once the CFA franc, which—between 1945 and 1958—was once an abbreviation for the franc for “colonies françaises d’Afrique,” or former French colonies in Africa.
In 1959, after Guinea’s independence, the principle Guinean franc was once issued as the country’s overseas cash. It was once then modified by way of the Guinean syli, which was once used throughout the country from 1971 to 1985. In 1985, the second Guinean franc modified the syli at par.
Guinea’s monetary machine is fueled by way of a rich reserve of minerals, gold, high-grade iron ore, and diamonds. Additionally, it boasts the world’s biggest reserves of bauxite, which is likely one of the primary exports for the West African nation.
However, the country, which has a GDP of $12.3 billion, has faced stalled monetary growth because of political instability. Additionally, the Ebola virus slowed down Guinea’s monetary growth in 2014 and 2015. However, the country’s monetary machine shrunk at a rate of 2.4% in 2020 versus 2019; the newest year for which decent knowledge is available.
The GNF and CFA Franc
Guinea used to be part of the franc zone of former French colonies, the usage of the CFA franc as its decent overseas cash until its independence. A variety of its neighboring world places—14 West African international locations generally, 12 of which could be former French colonies—nevertheless use the CFA franc. Together, they make up the African Financial Workforce.
The CFA was once created in 1945, after Global Warfare II, to stick from devaluing money in French colonies. Prior to this, currencies throughout the French colonies had been pegged to the French franc, which was once devalued with the signing of the Bretton Woods agreement in 1944.
When it was once introduced in 1945, the alternate rate was once 1 CFA to a minimum of one.70 French francs, shifting from 1 CFA to 2 French francs in 1948. The overseas cash stored parity when France switched its overseas cash from the French franc to the euro. The existing fixed alternate rate for the CFA to the euro is 1 euro to 655.96 CFA francs.
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