What Is the Comorian Franc (KMF)?
Let me tell you about the Comorian Franc, or KMF, which is the official national currency of Comoros, that sovereign African island nation in the Indian Ocean. It's maintained and issued by the country's central bank, the Banque Centrale des Comores. You see it represented by the symbol KMF on global currency exchanges. Since 1999, the Comorian Franc has been pegged to the euro at a rate of 491.96775 Comorian Francs to one euro. As of January 2022, one U.S. dollar equals roughly 437 KMF.
Key Takeaways
The Comorian Franc is the official currency of the African island nation of Comoros. It's pegged to the euro at an effective rate of about 492 KMF to 1 EUR. One franc is divided into 100 centimes, but no centimes have ever been issued. Comoros is one of the poorest countries in the world, with high unemployment and low levels of education.
Understanding the Comorian Franc (KMF)
The franc is the official national currency of the island archipelago of Comoros. The country's central bank is responsible for maintaining its value and handling its circulation. That bank, the Banque Centrale des Comores, was established in 1981, six years after the country gained independence. It's located in the capital, Moroni.
Banknotes come in denominations of 500, 1000, 2000, 5000, and 10,000 francs. Coins are minted in 1, 2, 5, 10, 25, 50, and 100 franc denominations. A single franc is divided into 100 centimes, but none have ever been issued or used.
The KMF is pegged to the euro, a setup that started when the European Union adopted the euro in 1999. The exchange rate is fixed at 491.96775 francs to one euro. Before that, it was pegged to the French franc at 50 KMF to 1 French franc. Currency rankings indicate that the KMF is most often exchanged with the United States dollar (USD).
Although the Comorian Franc is pegged to the euro, it is most often exchanged with the U.S. dollar. Cash is the main form of payment in this island nation. Larger places like hotels might accept credit cards. Transactions are done in the local currency, but some merchants take U.S. dollars and euros too, though change is given in KMF.
Special Considerations
Comoros has one of the poorest and smallest economies in the world. The workforce here has low education levels, and there aren't enough natural resources for residents or exports.
The primary industries, fishing and tourism, are vulnerable to extreme weather and sporadic volcanic activity. Despite a low unemployment rate of 8.4% in 2020, about 42% of its 864,335 citizens live below the poverty line. The population is young, with around 37% of residents 14 years old or younger.
Agriculture is key to the local economy, along with income from major exports: vanilla, cloves, and ylang-ylang perfume essence. Even with arable land, fertile soil, and a large fishing industry, the country imports about 70% of its food. In 2020, Comoros had real GDP growth of 3.1% and inflation at -0.9%.
History of Comoros
Comoros was initially part of a French colony that included Madagascar, starting when the island of Mayotte was purchased in 1841, though Portuguese explorers first discovered the archipelago in 1505. As a French colony, the currency was the French franc.
In 1920, Comorian currency was first printed on an emergency basis using altered Madagascar postage stamps as legal tender. The Comorian Franc was formally issued in the 1960s, appearing in both coin and bill form in various denominations. Coins specific to Comoros were issued in the early 1960s, with Arabic printing added since 1975.
The Union of Comoros consists of three islands: Anjouan, Moheli, and Grande Comore. A fourth island, Mayotte, was part of the union until 1975, when Comoros declared independence from France. However, France did not recognize Mayotte's independence, and it remains under French administration today.
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