In - depth Analysis of Benin's Currency XOF: A Comprehensive Guide to Exchange Rates, Diverse Remittance Methods and Denomination Details

The official currency of Benin is the West African CFA franc (XOF), which is managed by the Central Bank of West African States (BCEAO) and supported by the French Ministry of Finance. When making international remittances, it is crucial to understand the exchange rate fluctuations of the XOF, its denomination structure, and the remittance methods. For users who wish to send funds to Benin, choosing the right remittance channel is of great importance. BiyaPay can assist with international remittances to Benin, providing convenient and efficient services.

What are the Characteristics of Benin’s Currency?

The West African CFA franc (XOF) is the common currency used in Benin and eight other West African countries (such as Côte d’Ivoire, Mali, Senegal, etc.). This currency has a high level of stability because it is pegged to the euro (EUR), maintaining a stable exchange rate over the long term and being supported by the French Ministry of Finance.

In March 2025, the exchange rates of the XOF against major currencies were as follows:

• 1 US dollar ≈ 598.47 XOF
• 1 euro ≈ 655.74 XOF However, exchange rates change with market fluctuations. When making international remittances or currency exchanges, users should check the latest exchange rates in advance to ensure they obtain the best exchange value. For example, some remittance services offer real-time exchange rates, while the exchange rates of banks may include additional handling fees or price differences. Therefore, choosing the appropriate remittance method and exchange rate is crucial.

What are the Denominations of Benin’s Currency?

The XOF currency system in Benin includes both coins and banknotes, catering to different payment needs.

• Coin denominations: 1, 5, 10, 25, 50, 100, 200, 500, 1000 francs
• Banknote denominations: 500, 1000, 2000, 5000, 10000, 20000 francs In daily transactions, small payments usually involve the use of coins, while banknotes are more commonly used for larger transactions. For instance, 500 or 1000 francs may be used for market shopping or transportation expenses, while banknotes of 5000 francs and above may be used for rent or salary payments. When using Benin’s currency, users should pay attention to the exchange between different denominations to avoid inconvenience in giving and receiving change. Especially before making a remittance, understanding the main denominations in circulation locally can help the payee use the funds more conveniently. In addition, since the XOF circulates in multiple West African countries, travelers and cross-border traders also need to understand the payment habits of these countries to ensure the convenience of using the currency.

How to Remit Money to Benin?

For users who want to remit money to Benin, choosing a reliable remittance method is essential. Currently, there are various international remittance methods available in the market, including:

• Bank wire transfer (SWIFT transfer): Suitable for large remittances, but with high handling fees, and the funds may take 2-5 working days to arrive.
• International remittance companies (Western Union, MoneyGram): They can provide faster fund arrival times, and some transactions can be completed within a few minutes, but the handling fees may be relatively high.
• Online payment platforms (Wise, WorldRemit): They offer more competitive exchange rates, relatively low fees, and support mobile banking transfers.
• Mobile payments and e-wallets: Local mobile payment systems in Benin, such as Moov Money and MTN Mobile Money, also support international remittances, but it is necessary to confirm in advance whether the payee has the corresponding account. When choosing a remittance method, users should pay attention to the following factors:
• Whether the exchange rate is close to the real-time market rate (to avoid hidden fees).
• The level of transaction handling fees (there are significant differences in handling fees among different platforms).
• Whether the fund arrival time meets the requirements (for urgent remittances, it is recommended to choose a service with instant fund arrival).
• The convenience of the payment receipt method (some platforms support direct deposit into bank accounts, while others support cash withdrawals or mobile wallets).

How Does the Exchange Rate in Benin Affect International Remittances?

Since the XOF is pegged to the euro, its exchange rate is relatively stable, but it is still affected by international market and policy changes. For example, when the exchange rate of the euro against the US dollar changes, the exchange rate of the XOF against the US dollar may also be adjusted accordingly. Therefore, it is crucial for Beninese expatriates working overseas to pay regular attention to the exchange rate.

In addition, before making a transfer, remitters should consider the following factors:

• The exchange rate differences between banks and remittance companies: Bank exchange rates usually include a certain profit margin, while international remittance companies may offer more competitive exchange rates.
• Foreign exchange market fluctuations: If the exchange rate is likely to depreciate in the short term, it is advisable to remit money as soon as possible; conversely, if the franc is expected to appreciate, the payee may choose to wait for a more favorable opportunity to receive the funds.
• Whether the remittance method offers a “locked exchange rate”: Some remittance services allow users to lock in the current exchange rate when making a remittance, avoiding losses caused by market fluctuations during the transaction process. For users with long-term remittance needs, such as expatriate workers or family remitters, it is recommended to choose a remittance platform that offers low costs, stable exchange rates, and fast fund arrival times to ensure the maximum value of the funds.

How to Ensure the Security of Remittances?

International remittances involve the flow of large amounts of funds, so the security of the funds is of great importance. The following are some key measures to ensure the security of remittances:

• Use regulated remittance platforms and avoid using uncertified or private transfer methods to prevent fraud.
• Enable transaction notifications and two-factor authentication (2FA) to ensure that only authorized users can operate the account.
• Avoid conducting transactions on public Wi-Fi to prevent cyberattacks and information leakage.
• Regularly check the payment receipt status to ensure that the funds arrive as expected, and contact customer service in a timely manner if there are any abnormalities. In addition, it is recommended that remitters keep the transfer records, including the transaction number, payee information, and amount, so that they can quickly provide evidence in case of problems and safeguard the security of the funds.

Conclusion

The official currency of Benin, the XOF, is widely circulated in the West African region and is supported by the French Ministry of Finance, ensuring its relatively stable exchange rate. When remitting money to Benin, users should pay attention to the real-time exchange rate, transaction handling fees, fund arrival speed, and security to ensure that the funds reach the payee’s account in the best way possible.

If users want to have a more efficient and unlimited remittance experience, BiyaPay is also a choice worth considering. BiyaPay uses the “local remittance” method, supports transfers in most regions around the world, and ensures that funds can arrive quickly and safely. Compared with traditional bank remittance methods, BiyaPay offers lower costs and faster fund arrival times, making international transfers easier and more convenient.