What is the Comorian franc (KMF)?
Credit Ratings & Outlook
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In 2010 the total GDP was $541,097,513 in US Dollars, while the per capita GDP was $736. It grew by 2.10% over the previous year.
The latest unemployment rate for 1996 is 9.99%.
Consumer Price Index
The latest consumer price index for 2009 is 109.69.
The current head of the government is President Ikililou Dhoinine, who is also the head of state (in an executive role).
The official currency of the nation of Comoros is the Comorian franc. The Government of Comoros signed a monetary agreement with France in 1979 making Comoros a part of the franc zone. This allowed for the creation of a system of fixed parity between the French franc and the Comorian franc, as well as free convertibility between the two, which was guaranteed with the opening of an operations account at the French Treasury run by the Comorian central bank. This is where all exchange transactions are handled.
The Comorian franc was established in 1981 and was pegged to the French franc at 50 Comorian francs to 1 French franc. The Comorian franc was fixed to the euro when it was created in January 1999. The exchange rate is 491.9677 Comorian francs to 1 euro.
There have been several currencies before the modern franc. Before 1945, when Comoros was a province of Madagascar (a French possesion) the Madagascar franc was used, which was issued in 1925. In 1945, when Comoros became a seperate French territory, the currency was replaced by the Madagascar-Comores CFA franc. With Madagascar becoming independent from France in 1960, new banknotes were issued for Comoros until 1976, although it still remained French possesion. In 1975, Comoros gained independence from France, and a year later started to issue its own franc.
Sovereign Ratings for Comoros
Comoros is not rated.
What does it look like?
The political situation in Comoros has been extremely unstable since its independence in 1975 because of the many coups and political uprisings. In May 1999, a constitution was declared to give the President both executive and legislative powers. However, that was subject to international criticism and in December 1999 a Prime Minister was appointed. On February 17, 2000, an accord was signed to create a “New Comorian Entity” with a new constitution. This gave Moheli, Anjouan, and Grande Comore (the three islands making up the Comoros Union) the right to govern most of its own affairs, including financial autonomy, each with their own presidents. Although, a federal president and parliament are placed on the largest island, Grande Comore. The federal president rotates between the islands’ presidents.
President Azali Assounmani of Grande Comore is the first Union president. The President of Moheli is Said Mohamed Fazul, who was elected in 2002. The President of Anjouan is Mohamed Bacar. The federal presidency is rotated among these Presidents. The Director General of the Central Bank of Comoros is Mohamed Halifa.
Key Economic Factors
Main Attributes: Comoros, made up of three islands, is among the world’s poorest countries. Inadequate transportation links, a young and rapidly increasing population, low education levels, and scarce natural resources characterize the nation. The lack of education contributes to a subsistent level of economic activity, high unemployment, and a heavy dependence on foreign grants and technical assistance.
Foreign Trade: Comoros mainly imports items related to food production such as rice (a main staple), coconuts, bananas, and cassava; foodstuffs constitute 32% of total imports. The major exports are agricultural items such as vanilla, cloves, perfume essences, and copra. Comoros is the world’s leading producer of essence of ylang-ylang, used in manufacturing perfume, and is the world’s second-largest producer of vanilla. France is the nation’s major trading partner, but finances small projects only. The United States receives a growing percentage of Comoros’ exports but supplies only a negligible fraction of its imports (less than 1%).
Agriculture: Agriculture (namely: fishing, hunting, forestry) is the leading sector in Comoros, constituting approximately 40% of the nation’s GDP, employing 80% of the labor force, and providing the bulk of earnings from foreign exchange.
Other Key Industries:
Tourism, perfume distillation, textiles, furniture, jewelry, construction materials, and soft drinks.
1 Comoros Franc to:
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- Other Currencies Accepted:Dram is the sole legal tender but all major currencies are accepted at retail and financial institutions and in private transactions
- Currency Peg: No
- Black Market for Currency: No
- Currency Volatility: Medium to High
- Estimated GDP Per Capita: 4,600 USD (2004)
- Languages Spoken: Armenian (96%), Russian (2%), other (2%)