The Comoros Franc (KMF) is the official currency of the Union of the Comoros, an archipelago country located in the Indian Ocean, off the eastern coast of Africa.
The currency is issued and managed by the Central Bank of the Comoros (Banque Centrale des Comores), which serves as the country’s central bank.
The Comoros Franc is pegged to the Euro at a fixed exchange rate.
Fixed Exchange Rate
The Comoros Franc is pegged to the Euro at a fixed exchange rate of 1 Euro = 491.96775 Comoros Francs.
This fixed exchange rate system provides stability for the Comoros Franc against fluctuations in the foreign exchange market and helps facilitate trade and investment between the Union of the Comoros and the European Union.
Subdivisions and Denominations
The Comoros Franc is subdivided into 100 smaller units called centimes, although centime-denominated coins are no longer in circulation due to their low value.
Coins are issued in denominations of 1, 2, 5, 10, 25, 50, and 100 Comoros Francs,
Banknotes are available in denominations of 500, 1,000, 2,000, 5,000, and 10,000 Comoros Francs.
Economy and Challenges
The economy of the Union of the Comoros is small and largely dependent on agriculture, fishing, and remittances from the Comorian diaspora.
The country faces significant economic challenges, including a lack of natural resources, poor infrastructure, and a limited industrial base.
Additionally, the Comoros is vulnerable to natural disasters, such as cyclones and volcanic eruptions, which can have a significant impact on its economy.
Summary
In summary, the Comoros Franc is the official currency of the Union of the Comoros and is managed by the Central Bank of the Comoros.
The currency is pegged to the Euro at a fixed exchange rate, providing stability against foreign exchange fluctuations.
The Comoros Franc is subdivided into centimes and is issued in various banknote and coin denominations.
The economy of the Union of the Comoros is small and faces several challenges, including a lack of natural resources, poor infrastructure, and vulnerability to natural disasters.