What is the basic unit of currency for Guinea-Bissau?

Guinea-Bissau, a country located in West Africa, uses the West African CFA franc as its basic unit of currency. The West African CFA franc, denoted as XOF, is the common currency used by eight countries in the West African Economic and Monetary Union (WAEMU) - Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal, and Togo.

The West African CFA franc has been the official currency of Guinea-Bissau since its independence from Portugal in 1973. It replaced the Portuguese Guinea escudo as the national currency. The currency is issued by the Central Bank of West African States (BCEAO), which is responsible for maintaining its stability and ensuring its availability.

The West African CFA franc is pegged to the euro at a fixed exchange rate, with 1 euro equal to 655.957 XOF. This means that the value of the West African CFA franc is tied to the euro, offering stability and facilitating economic transactions within the region.

As the basic unit of currency, the West African CFA franc is used for all financial transactions in Guinea-Bissau. It is accepted in both cash and digital forms, allowing residents and visitors to carry out daily transactions, such as buying goods and services, paying bills, and conducting business operations.

It is important to note that while the West African CFA franc is widely used in Guinea-Bissau, the country's economy heavily relies on agriculture, with cashew nuts being the main export product. As such, the value of the currency can be influenced by factors such as international market prices for agricultural commodities.

In conclusion, the basic unit of currency for Guinea-Bissau is the West African CFA franc. This currency, which is shared by several countries in the region, provides stability and facilitates economic transactions within Guinea-Bissau. Whether in cash or digital form, the West African CFA franc is essential for conducting various financial activities in the country.

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