What Is the Guinea Franc (GNF)?
Let me explain the Guinea Franc, or GNF, directly to you. It's the currency abbreviation for the national currency of the Republic of Guinea, a West African country. You might know it as Guinea-Conakry to distinguish it from Guinea-Bissau, named after its capital. This place was once French Guinea. As of August 2023, one US dollar equals about 8,586 GNF—keep that in mind if you're dealing with exchanges.
Key Takeaways
- The Guinea franc (GNF) is the national currency of the African nation of Guinea.
- The country used the common area currency the CFA franc until its independence in 1958.
- The GNF freely floats on the international currency markets.
Understanding the Guinea Franc (GNF)
I want you to grasp this: the GNF is actually the second franc Guinea has used. As a former French colony, Guinea gained independence in 1958 and before that relied on the CFA franc, which stood for 'colonies françaises d'Afrique' from 1945 to 1958. In 1959, post-independence, they issued the first Guinean franc. Then, from 1971 to 1985, it was replaced by the Guinean syli. In 1985, the second Guinean franc came back, replacing the syli at par.
Guinea's economy runs on its rich minerals—gold, high-grade iron ore, diamonds, and one of the world's largest bauxite reserves, which is a key export. But with a GDP of $16.1 billion in 2021, growth has stalled due to political instability. The Ebola virus hit hard in 2014 and 2015, slowing things down, though GDP grew by 3.9% in 2021, the latest data available.
The GNF and CFA Franc
Here's how it connects: Guinea was part of the franc zone for former French colonies, using the CFA franc until independence. Now, 14 West African countries—12 ex-French colonies—still use it, forming the African Financial Community. The CFA started in 1945 post-World War II to avoid devaluing colonial money. Before that, colonial currencies were pegged to the French franc, which devalued under the 1944 Bretton Woods agreement.
Initially, 1 CFA equaled 1.70 French francs, then shifted to 2 in 1948. It maintained parity when France switched to the euro. Today, the fixed rate is 1 euro to 655.96 CFA francs— that's the setup for those neighbors.
Disclaimer
Remember, I'm presenting this information impartially—it's not tax, investment, or financial advice. It doesn't consider your specific objectives, risk tolerance, or circumstances, and it might not suit everyone. Investing carries risks, including potential loss of principal.
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