Comorian Franc (KMF)

What Is the Comorian Franc (KMF)?

The term Comorian franc (KMF) alludes to the official national currency of Comoros, a sovereign African island nation situated in the Indian Ocean. It is kept up with and issued by the country's central bank, la Banque Centrale des Comores. It is addressed by the symbol KMF on global currency exchanges. The Comorian franc was pegged to the euro starting around 1999 at a rate of 491.96775 Comorian francs to one euro. As of January 2022, $1 U.S. is equivalent to about 437 KMF.

Grasping 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 keeping up with its value and is in charge of its circulation. The bank, called la Banque Centrale des Comores, was laid out in 1981, six years after the country acquired its independence. The central bank is situated in the capital of Moroni.

Banknotes are imprinted in different denominations going from the 500, 1000, 2000, 5000, and 10,000 franc notes. The country likewise utilizes coins, which are stamped in 1, 2, 5, 10, 25, 50, 100 franc denominations. A single franc is separated into 100 centimes, albeit no centimes have at any point been issued or utilized.

The KMF is pegged to the euro. This relationship was laid out when the European Union adopted the euro in 1999. The exchange rate was fixed — and stays in that capacity — at 491.96775 francs to one euro. Prior to this, the Comorian franc was pegged to the French franc at a rate of 50 KMF to 1 French franc. Currency rankings show that the KMF is most frequently exchanged with the United States dollar (USD).

Albeit the Comorian franc is pegged to the euro, it is most frequently exchanged with the U.S. dollar.

Cash is transcendently utilized in the island nation. Larger foundations, like lodgings, may take credit cards. Transactions are executed in the nearby currency, despite the fact that there are a few vendors who acknowledge both the U.S. dollar and the euro alongside the Comoros franc. Change, be that as it may, is given in the KMF.

Special Considerations

Comoros has one of the least fortunate and littlest economies in the world. The island's labor force has a low level of education, and there are insufficient natural resources available either for inhabitants or to use as exports.

The essential industries of the nation, fishing, and the travel industry, are powerless against the locale's extreme weather patterns and inconsistent volcanic activity. Thus, despite a relatively low rate of unemployment of 8.4% in 2020, roughly 42% of its 864,335 residents live below the poverty line. The population of Comoros is largely youthful — roughly 37% of occupants are 14 years of age or more youthful.

Agriculture is significant to the neighborhood economy of Comoros, just like the income generated by its three major exports, vanilla, cloves, and a scent embodiment known as ylang. Despite the archipelago's arable land, ripe soil, and large fishing industry, the country actually 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 state, which included Madagascar, when the island of Mayotte was purchased in 1841, however the principal Europeans to discover the archipelago were Portuguese in the year 1505. As a French state, the money utilized was the French franc.

In 1920, Comorian currency was first imprinted 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 during the 1960s and has appeared in both coin and bill form in different denominations. Coins dedicated explicitly to Comoros were issued in the mid 1960s, and Arabic printing has been stepped on them beginning around 1975.

The Union of Comoros is made of three islands: Anjouan, Moheli, and Grande Comore. A fourth island, Mayotte, was part of the archipelago union until 1975, when the Comoros Union declared its independence from France. In any case, France didn't perceive the independence of Mayotte, and the island stays under French administration right up to the present day.

Highlights

• The Comoros franc is pegged to the euro at an effective rate of around 492 KMF to 1 EUR.
• One franc is separated into 100 centimes, albeit no centimes have at any point been issued.
• The Comorian franc is the official currency of the African island nation of Comoros.
• Comoros is perhaps of the most unfortunate country in the world, with high unemployment and low levels of education.