Guinea Franc (GNF)

Key takeaways

• The Guinea franc (ISO code: GNF) is the national currency of the Republic of Guinea (Guinea-Conakry).
• Guinea has issued two guinean francs; a short-lived syli was used between them (1971–1985).
• The GNF floats freely on international markets and is influenced by domestic political stability and commodity exports.

What is the Guinea franc?

The Guinea franc (GNF) is the official currency of the Republic of Guinea in West Africa. The country is sometimes called Guinea-Conakry to distinguish it from neighboring Guinea-Bissau.

Brief history

• During colonial rule, the CFA franc was used across French colonies in West Africa.
• After independence, Guinea introduced its first Guinean franc.
• From 1971 to 1985 Guinea used the syli. In 1985 the syli was replaced by the second Guinean franc at par, the currency still in use today.

Economy and factors affecting the currency

Guinea has extensive natural resources, including vast bauxite reserves, high-grade iron ore, gold and diamonds. Despite this resource base, economic growth has been intermittent due to political instability and health crises (for example, the 2014–2015 Ebola outbreak). These factors, together with terms of trade for commodity exports, influence the franc’s value and volatility.

Relation to the CFA franc

Before independence Guinea belonged to the franc zone that used the CFA franc, a common currency for many former French colonies. Several West African countries still use the CFA franc, which is pegged to the euro at a fixed rate (1 euro = 655.96 CFA francs). Guinea’s decision to issue its own franc removed it from that common peg and gave the country a floating national currency.

Exchange rate and monetary policy

The Guinea franc floats on international currency markets, so its exchange rate fluctuates with market forces and domestic economic conditions. As an example of recent levels, 1 US dollar has traded in the order of several thousand GNF (for illustration, about 8,586 GNF per USD).

Conclusion

The GNF is Guinea’s independently issued currency, shaped by the country’s colonial history, periodic currency reforms, and the performance of a resource-dependent economy. Political stability, export revenues, and broader market sentiment remain the primary drivers of its exchange-rate behavior.