What is the Comorian Franc (KMF)?
The term Comorian franc (KMF) refers to the official national currency of Comoros, a sovereign African island nation located in the Indian Ocean. The Banque Centrale des Comores, the nation’s central bank, is in charge of maintaining and issuing it. On international currency exchanges, it goes by the symbol KMF. The Comorian franc was fixed to the euro as of 1999 at a rate of 491.96775 Comorian francs to one euro. As of January 2022, $1 U.S. equals approximately 437 KMF.
Understanding the Comorian Franc (KMF)
The franc is the designated national currency of the island archipelago of Comoros. The country’s central bank is responsible for maintaining its value and is in charge of its circulation. The bank, called La Banque Centrale des Comores, was established in 1981, six years after the country obtained its independence.
The central bank is located in the metropolis of Moroni. Banknotes are printed in various denominations, ranging from 500, 1000, 2000, 5000, and 10,000 franc notes. The country also uses coins minted in 1, 2, 5, 10, 25, 50, and 100 franc denominations.
A single franc is divided into 100 centimes, although none have been issued or used. The KMF is pegged to the euro. This relationship was established when the European Union adopted the euro in 1999. The exchange rate was fixed—and remains as such—at 491.96775 francs to one euro. Before this, the Comorian franc was linked to the French franc at a rate of 50 KMF to 1 French franc. Currency rankings indicate that the KMF is often exchanged with the United States dollar (USD). Cash is predominantly used in the island nation. Larger establishments, such as hotels, may accept credit cards.
Transactions are executed in the local currency, although some merchants accept the U.S. dollar, the euro, and the Comoros franc. Change, however, is indicated in the KMF.
Particular Considerations
Comoros has one of the poorest and smallest economies in the world. Tisland’s workforce has a low level of education, and there are not enough natural resources available either for residents or to use as exports.
The nation’s primary industries, fishing, and tourism, are vulnerable to the region’s extreme weather conditions and intermittent volcanic activity. Consequently, despite a relatively low unemployment rate of 8.4% in 2020, approximately 42% of its 864,335 citizens live below the poverty line. The population of Comoros is primarily young—approximately 37% of residents are 14 years old or younger.
The income from Comoros’ three main exports—vanilla, cloves, and a perfume essence known as ylang-ylan—is essential to the country’s local economy. Despite the archipelago’s arable land, fertile soil, and significant fishing industry, the country still imports around 70% of its food. For 2020, Comoros saw real GDP growth of 3.1%, with inflation at -0.9%.
History of Comoros
Comoros was initially part of a French colony, which included Madagascar, when the island of Mayotte was purchased in 1841. Still, the first Europeans to discover the archipelago were Portuguese in 1505.
As a French colony, the money used was the French franc. In 1920, Comorian currency was first issued on an emergency basis on a series of Madagascar postage stamps that had been altered to become legal tender and circulate as money in exchange. The Comorian franc was first formally issued in the 1960s and has appeared in coin and bill form in numerous denominations.
Coins dedicated specifically to Comoros were issued in the early 1960s, and Arabic printing has been imprinted on them since 1975.
The Union of Comoros comprises three islands: Anjouan, Moheli, and Grande Comor. A fourth island, Mayotte, was part of the archipelago union until 1975, when the Comoros Union declared independence from France. However, France did not recognize the independence of Mayotte, and the island remains under French administration to this day.
Conclusion
- Comoros is an island country in Africa. The Comorian franc is their national currency.
- For every euro, the Comoros franc is worth precisely 492 KMF.
- There are 100 centimes in a franc, but none have ever been made.
- Comoros is one of the world’s poorest places to live, with many unemployed people and few schools.