Guinean Franc (GNF)

Basic Concepts of the Guinean Franc

The Guinean franc is the legal tender of the Republic of Guinea, with the currency code GNF and the symbol FG. The currency is issued and managed by the Central Bank of Guinea, with a non-convertible mechanism, and circulates mainly in the West African country of Guinea.

Countries and Regions of Use

The official circulation of the Guinean franc is limited to the Republic of Guinea proper. This West African country is bordered by Senegal and Mali to the north, Côte d'Ivoire to the east, Sierra Leone and Liberia to the south, and the Atlantic Ocean to the west, and its capital is Conakry.

Units of Currency and Denomination System

The Guinean franc has a decimal system: 1 franc = 100 ducats. Currently in circulation are banknotes in denominations of 100, 500, 1,000, 5,000, 10,000 and 20,000 francs, and coins in denominations of 1, 5, 10, 25 and 50 francs. The ducat unit has been withdrawn from circulation due to inflation.

Historical background and development

The Guinean franc was created in 1959 to replace the West African franc, marking Guinea's monetary autonomy from French colonial rule. 1985 saw the issuance of the New Guinea franc (1 new franc = 100 old francs), which was reintroduced under its current name in 2002. Throughout the many currency reforms, the symbolism of the country's economic sovereignty has been maintained.

Exchange rate and economic characteristics

As a non-convertible currency, the Guinean franc exchange rate is controlled by the central bank. Its value is closely linked to domestic exports of bauxite, gold and other mineral resources. In recent years, the real purchasing power of the Guinean franc has shown continuous fluctuations due to inflation.