The Guinea Franc (GNF) is the currency abbreviation for the national currency of the Republic of Guinea, a country located in West Africa.
The nation that we now know as the Republic of Guinea was previously referred to as French Guinea. In contemporary settings, it goes by Guinea-Conakry to differentiate from its neighbor, Guinea-Bissau, with Conakry referring to its capital city. As of August 2023, USD 1 equals roughly 8,586 GNF.
Key Takeaways
- The Guinea Franc (GNF) is the official currency of Guinea, an African country.
- Before gaining independence in 1958, Guinea used the CFA Franc.
- The GNF operates on a free-floating mechanism in global currency markets.
Fascinating History of the Guinea Franc (GNF)
The GNF is the second Franc used as a currency in Guinea’s history. Initially a French colony, Guinea achieved independence in 1958. During the colonial era, the nation’s currency was the CFA Franc - a term used between 1945 and 1958 to describe currency applicable to the former French African colonies.
The first Guinean Franc was amenably adopted in 1959, right after the country claimed its independence. This was later replaced by the Guinean Syli, circulating from 1971 to 1985. The second and current Guinean Franc thus substituted the Syli at par in 1985.
Guinea boasts a rich resource pool, thriving with minerals, high-grade iron ore, gold, and diamonds. It also has some of the largest bauxite reserves globally, marking bauxite as one of its major exports.
The country’s economy stagnated due to political instability and impacts from the Ebola outbreak in 2014 and 2015. Despite these setbacks, Guinea’s GDP exhibited a growth of 3.9% in 2021.
The GNF and Its Relationship with the CFA Franc
Guinea was once part of the franc zone, using the CFA Franc as the official currency until its independence. The CFA currency area comprises 14 West African countries, 12 being former French colonies, now collaboratively functioning as the African Financial Community.
Established in 1945 post World War II, the CFA Franc aimed to stabilize economic situations in French colonies by withstanding currency devaluation. This replaced the pre-existing link between French colonies’ currencies and the French Franc, devalued in 1944 due to the Bretton Woods agreement.
Originally pegged at 1 CFA to 1.70 French Francs and later adjusted to 1 CFA to 2 French Francs in 1948, the currency parity continued when France transitioned from the French Franc to the Euro. The present steadfast exchange rate is 1 Euro to 655.96 CFA Francs.
Note
Invest your finances wisely; always consider seeking advice aligned with individualized fiscal conditions. Investing inherently involves risks, including the possibility of losing principal.
Related Terms: French franc, CFA Franc, Economic Growth, Currency Exchange.
References
- Oanda. “Guinea Franc”.
- United States of America Department of Commerce. “Guinea - Country Commercial Guide”.
- World Bank. “Republic of Guinea: Overcoming Growth Stagnation to Reduce Poverty”,
- World Bank. “2014-2015 West Africa Ebola Crisis: Impact Update”.
- World Bank. “DataBank | World Development Indicators”, Select Guinea.
- International Monetary Fund. “Background Information”.
- International Monetary Fund. “France and the Breakdown of the Bretton Woods International Monetary System”.
- John Hopkins Institute for Applied Economics. “Studies in Applied Economics: A Balance Sheet Analysis of the CFA Franc Zone”, Page 20.
- U.S. Department of State. “Custom Report Excerpts: Equatorial Guinea, Gabon, Guyana, Lesotho, Mauritania”.
