What Is the Comorian Franc (KMF)?

The Comorian Franc (KMF) serves as the official currency of Comoros, a distinguished African island nation situated in the Indian Ocean. This currency is regulated and issued by Comoros’ central bank known as la Banque Centrale des Comores. On the global stage, its representation is denoted by the symbol KMF. In 1999, a fixed exchange rate of 491.96775 Comorian francs to one euro was established. As of January 2022, the value stands at approximately $1 U.S. equating to 437 KMF.

### Key Insights

• The Comorian franc is the official currency of Comoros, an African island nation.
• The exchange rate is approximately 492 KMF to 1 EUR, pegged to the euro.
• Though divided into centimes, they have never been issued or utilized.
• Comoros faces challenges such as high unemployment and low education levels.

Understanding the Comorian Franc (KMF)

The Comorian Franc serves as the official national currency of Comoros, an island archipelago. Responsibilities for maintaining its value and circulation are vested in the country’s central bank, la Banque Centrale des Comores, established in 1981, six years after attaining independence. The central bank, situated in Moroni, is the focal point of these operations.

Various banknotes are printed in denominations ranging from 500 to 10,000 francs. Additionally, coins in denominations of 1 to 100 francs are minted. While officially divided into 100 centimes, they have never been actively utilized.

The Euro pegs the value of KMF. This fixed exchange rate, set at 491.96775 francs to each euro, dates back to the euro’s adoption by the European Union in 1999. Previously, the Comorian franc was pegged at a rate of 50 KMF to 1 French franc. Trading data reveals that the KMF is principally exchanged with the United States dollar (USD).

Although pegged to the euro, the Comorian franc is predominantly traded with the U.S. dollar.

Cash transactions are prevalent in the island nation, with larger establishments occasionally accepting credit cards. While transactions are commonly conducted in the local currency, some merchants also support payments in USD and euro alongside the Comorian franc, with change dispensed in KMF.

Special Considerations

Comoros ranks among the world’s poorest nations. With a population facing low education levels and scarce natural resources for either internal consumption or exports, the economy encounters significant challenges.

The primary industries within the nation, namely fishing and tourism, are susceptible to the region’s adverse weather conditions and intermittent volcanic activity. Despite a relatively modest unemployment rate of 8.4% in 2020, about 42% of Comoros’ 864,335 citizens reside below the poverty line. The demographic composition skews young, with roughly 37% under the age of 14.

Notably, agriculture plays a pivotal role in Comoros’ local economy. Furthermore, vital income is derived from its top three exports: vanilla, cloves, and the fragrant ylang-ylang essence. Despite ample arable land, fertile soil, and a thriving fishing sector, the nation remains reliant on food imports to the extent of 70%. In 2020, Comoros recorded a real GDP growth of 3.1% with inflation pegged at -0.9%.

History of Comoros

Comoros was historically part of a French colony, inclusive of Madagascar, with the purchase of the island of Mayotte in 1841. Originally discovered by Portuguese explorers in 1505, Comoros adopted the French franc as its currency during the colonial period.

The inception of Comorian currency involved the temporary use of altered Madagascar postage stamps that served as money. Formal issuance of the Comorian franc, both in coin and bill form, commenced in the 1960s, covering diverse denominations. By the early 1960s, distinctive coins dedicated to Comoros were introduced, featuring Arabic inscriptions since 1975.

The Union of Comoros comprises three primary islands: Anjouan, Moheli, and Grande Comore. Priorly including Mayotte until 1975, the nation declared independence from France, although Mayotte’s autonomy was unrecognized, remaining under French jurisdiction to date.