Define XPF:

"XPF is the currency code for the French Pacific franc, which is the official currency of several French overseas territories in the Pacific Ocean."

Explain XPF:

XPF: 

XPF is the currency code for the French Pacific franc, which is the official currency of several French overseas territories in the Pacific Ocean. The territories that use the French Pacific franc are French Polynesia, New Caledonia, and Wallis and Futuna.

Key Facts about the French Pacific Franc (XPF):

1. Currency Subdivision: The French Pacific franc is subdivided into smaller units called centimes. However, centimes are not commonly used in practice, and transactions are usually rounded to the nearest franc.
   
   
2. Fixed Exchange Rate: The French Pacific franc has a fixed exchange rate with the euro. It is pegged at a rate of 1 euro = 119.3317 XPF. This fixed exchange rate is maintained through a currency arrangement with the French Treasury.
   
   
3. History: The French Pacific franc was introduced in 1945 and initially pegged to the French franc. Following the introduction of the euro, the peg was shifted to the euro at the fixed rate mentioned above.
   
   
4. Central Bank: The Institut d'émission d'Outre-Mer (IEOM) is responsible for issuing and managing the French Pacific franc. It oversees monetary policy and ensures the stability of the currency within the territories that use it.
   
   
5. Use and Circulation: The French Pacific franc is the sole legal tender in the territories of French Polynesia, New Caledonia, and Wallis and Futuna. It is used for everyday transactions, including buying goods and services, paying bills, and conducting business activities.
   
   
6. Economic Impact: The use of a common currency like the French Pacific franc within these territories simplifies trade and economic activities. It eliminates exchange rate fluctuations and facilitates economic integration with France.
   
   
7. Currency Symbol: The symbol for the French Pacific franc is "Fr." or "XPF." It is often used in conjunction with the country code to denote specific currencies within the territories that use it.
   
   
8. Relationship with France: As overseas territories of France, the French Pacific franc's value and stability are closely tied to the economic policies and developments in France. The French government guarantees the convertibility of the currency at the fixed exchange rate.

Conclusion:

The French Pacific franc (XPF) is the currency used in French Polynesia, New Caledonia, and Wallis and Futuna. It is a shared currency among these territories, maintaining a fixed exchange rate with the euro and facilitating economic integration within the region.