What Is the Guinea Franc (GNF)?

The Guinea Franc (GNF) is the official currency of the Republic of Guinea, located in West Africa. It is denoted by the currency abbreviation GNF. As of August 2023, the exchange rate is approximately 8,586 GNF for every US dollar.

Key Takeaways:

• The Guinea Franc (GNF) serves as the national currency of Guinea in Africa.
• Prior to independence in 1958, Guinea used the common area currency, the CFA franc.
• The GNF operates as a freely floating currency in the global currency markets.

Understanding the Guinea Franc (GNF)

The Guinea Franc (GNF) is the second franc to be utilized as the official currency in Guinea. Prior to independence, Guinea was under French governance and used the CFA franc as its currency. The CFA franc, which stood for “franc for colonies françaises d’Afrique” between 1945 and 1958, was replaced by the first Guinean franc after independence. This was subsequently replaced by the Guinean syli from 1971 to 1985, with the second Guinean franc taking its place in 1985.

Guinea’s economy thrives on its rich mineral resources, such as gold, high-grade iron ore, diamonds, and significant bauxite reserves, one of its primary exports. Despite economic setbacks due to political instability and the Ebola outbreak, Guinea exhibited a 3.9% GDP growth in 2021, reaching $16.1 billion.

The Guinea Franc (GNF) and CFA Franc

Guinea, previously part of the franc zone of former French colonies, employed the CFA franc as its official currency until gaining independence. While Guinea transitioned to the GNF, many neighboring West African countries continue to use the CFA franc. Originating in 1945 post-World War II, the CFA franc was established to maintain monetary stability in French territories.

Initially pegged to the French franc, the CFA franc maintained a fixed exchange rate until France adopted the euro. Currently, the fixed exchange rate stands at 1 euro to 655.96 CFA francs.

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