LEGAL REGULATION OF PACIFIC FRANC ENISSION AND CIRCULATION

Abstract

The essential condition for the development of financial law science is to address to foreign experience in legal regulation of social relations. The comparative legal researches can enrich the doctrine and contribute to the improvement of practice of implementation of financial legislation. This fully applies to the sphere of financial-legal regulation of social relations in the area of monetary circulation. Traditionally it is assumed that a single currency shall apply in the framework of the state. Meanwhile, several foreign countries have widespread practice of issue and circulation of regional and local currencies authorized by the government. That is why it is quiet crucial to understand the peculiarities of legal regulation of issuing CFP franc as a regional currency that is in circulation in French territories in the Pacific ocean. This article is devoted to the study of the order of issuing and circulating of CFP franc. The work discusses the specifications of the administrative-territorial division of the French Republic and its influence on the monetary circulation in the state. Also, the authors are exploring the genesis of the issuing institutions of France and their competence. So, in addition to the Bank of France, the institution of the overseas departments and issuing institution of the overseas territories have the right to carry out issuing of currencies. The main purpose of these bodies is to ensure the stable monetary circulation in the French overseas territories. The article concludes that the CFP franc is a means of providing additional liquidity for the growth of separate administrative-territorial entities. As a priority aim of introducing a parallel currency, the French government has considered the protection of the local population from the fluctuations of the national currency. The CFP franc is in circulation in a limited area and it is not recognized as a legal tender in Metropolitan France.