The islands of New Caledonia were discovered by Captain Cook in 1774. New Caledonia became a French colony on September 24, 1853 and a French overseas territory on December 28, 1946.
Upon making New Caledonia a colony, the French introduced the French Franc (FRG) into New Caledonia. The Banque de la Nouvelle-Caledonie was created on July 14, 1874 to issue banknotes in New Caledonia, but on February 20, 1888, the Banque de l'Indochine took over the responsibility for issuing banknotes in New Caledonia. On August 8, 1920, all banknotes and divisionary coins of Metropolitan France became legal tender in New Caledonia.
The New Caledonia Franc (NCG) traded at par with the French Franc before World War II, but in 1941, New Caledonia was incorporated into the Sterling area. Consequently, the New Caledonia Franc did not depreciate at the same rate as the French Franc. United States “Hawaiian” Dollars, equal to 50 French Francs, were also used during World War II on New Caledonia.
The Colonies Francaises du Pacifique (CFP) Franc (XPF) was created on December 26, 1945 for use in New Caledonia (NCF), French Polynesia and the Wallis and Futuna Islands. The CFP has also referred to Communaute Francaise du Pacifique and Communaute Financiere du Pacifique. Because France had suffered inflation during the war, the initial exchange rate was set at 1 CFP Franc equal to 2.4 French Francs, but by September 20, 1949, the exchange rate had sunk to 1 CFP Franc equal to 5.5 French Francs. When France introduced the Nouveau Franc on January 1, 1960, a new CFP Franc was not introduced, so the exchange rate became 1 CFP Franc equal to 0.055 Francs Nouveau. The Treasury of Noumea issued emergency, small-denomination banknotes during World War I and World War II. The first coins were issued for New Caledonia in 1949. Until then, French coins were the primary medium of exchange.
The Institut d'Emission d'Outre-Mer took over the right to issue banknotes from the Banque de l'Indochine in 1969. It issued separate, overprinted banknotes for French Polynesia (Papeete), the New Caledonia (Noumea) and the New Hebrides (Nouvelle Hebrides) until 1985, and began issuing a single series of banknotes for French Polynesia in 1985. The notes overprinted Papeete and Noumea are still valid. Since the CFP Franc is a separate currency from the French Franc, New Caledonia will not be using the Euro.
