Comorian franc
From Wikipedia, the free encyclopedia
| Comorian franc franc comorien (French) فرنك قمري (Arabic) |
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| ISO 4217 Code | KMF | ||||
|---|---|---|---|---|---|
| User(s) | Comoros | ||||
| Inflation | 3% | ||||
| Source | The World Factbook, 2005 est. | ||||
| Pegged with | euro = 491.96775 francs | ||||
| Coins | |||||
| Freq. used | 25, 50, 100 francs | ||||
| Rarely used | 2, 5, 10 francs | ||||
| Banknotes | 500, 1000, 2000, 5000, 10000 francs | ||||
| Central bank | Banque Centrale des Comores | ||||
| Website | www.bancecom.com | ||||
| Printer | Banque de France | ||||
| Website | www.banque-france.fr | ||||
| Mint | Monnaie de Paris | ||||
| Website | www.monnaiedeparis.com | ||||
The Comorian franc (French: franc comorien; Arabic: فرنك قمري) (ISO 4217 currency code KMF) is the official currency of Comoros. It has existed in its present form since 1981.
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[edit] History
[edit] Monetary cooperation with France
On 23 November 1979, the government of Comoros signed the Accord de coopération monétaire entre la République Française et la République fédérale islamique des Comores, a monetary cooperation agreement with France, making Comoros part of the franc zone (but not part of the CFA franc zone). This agreement provided for the establishment of a system of fixed parity between the French franc and the Comorian franc and free convertibility between the two currencies, guaranteed by the Comorian central bank's opening of an operations account (compte d'operation) at the French Treasury (Trésor public) to handle all exchange transactions. Sixty-five percent of the foreign exchange reserves of Comoros are held in euros in this account. This account is similar to overnight deposits with the French Treasury: it may bear interest and may, in special circumstances, post a negative balance. However, to prevent this account from showing a lasting overdraft, a number of preventative measures have been set up.
The stability of the Comorian franc is founded on tight monetary and credit discipline, underpinned by two specific safeguard measures: the central bank is required to maintain 20% foreign-exchange cover of its sight liabilities, and the government is not allowed to draw more than 20% of the previous year's budget receipts from their central bank funds.
The ministers of finance of the franc area (France, the CFA zone and Comoros) meet biannually.
The agreement between France and the Comoros is essentially the same as the agreement France has with the CFA Zone. It is a continuation of a relationship of monetary cooporation between the two countries that has existed for more than a century.
[edit] Exchange rate
From its creation in 1981, the Comorian franc was pegged to the French franc at the rate of 50 Comorian francs to 1 French franc. This fixed rate has changed only once. On January 12, 1994, the currency was devalued, in concert with the CFA franc devaluation; however, the Comorian franc was devalued 33% to the new rate of 75 Comorian francs for 1 French franc, while the CFA franc's new rate was 100 CFA francs to 1 French franc. With the creation of the euro in January 1999, the Comorian franc was pegged, at its prevailing rate, to the new currency. The exchange rate is now 491.96775 Comorian francs to 1 euro.
[edit] European Monetary Union
In 1998 in anticipation of European Monetary Union, the Council of the European Union addressed the monetary agreements France has with the CFA Zone and Comoros and ruled that:
- the agreements are unlikely to have any material effect on the monetary and exchange rate policy of the Euro zone
- in their present forms and states of implementation, the agreements are unlikely to present any obstacle to a smooth functioning of economic and monetary union
- nothing in the agreements can be construed as implying an obligation for the European Central Bank (ECB) or any national central bank to support the convertibility of the CFA and Comorian francs
- modifications to the existing agreements will not lead to any obligations for the European Central or any national central bank
- the French Treasury will guarantee the free convertibility at a fixed parity between the euro and the CFA and Comorian francs
- the competent French authorities shall keep the European Commission, the European Central Bank and the Economic and Financial Committee informed about the implementation of the agreements and inform the Committee prior to changes of the parity between the euro and the CFA and Comorian francs
- any change to the nature or scope of the agreements would require Council approval on the basis of a Commission recommendation and ECB consultation
[edit] Central Bank
The statutes of the Central Bank of the Comoros (Banque Centrale des Comores / البنك المركزي القمري Al-Bank al-Markazi al-Qomori) state that its Board of Directors shall have eight members who are chosen from the Comorian Government, the French Central Bank (Banque de France) and the French government. The post of Deputy Director of the Central Bank of the Comoros is held by a Banque de France official, who is responsible for monetary policy. Since 19 November 1999, all the central bank's official rates have been pegged to the Euro Overnight Index Average (EONIA) leading to a stabilisation of interest rate differentials with the euro.
The BCC applies a compulsory reserves system (30% of deposits) and a bank monitoring system. The headquarters are located in Moroni, and the current bank governor is Mer Said Ahmed Said Ali.
[edit] Denominations
The primary language used on Comorian francs is French, but Arabic is also used on all denominations, except for the 2-franc coin which is no longer minted.
[edit] Banknotes
The Comorian banknotes are manufactured by the Banque de France at their paper mill in Vic-le-Comte and their printing works in Chamalières, both in Puy-de-Dôme, Auvergne. The new 500, 1000, and 2000 franc notes contain the EURion constellation.
- 500F
- 1,000F
- 2,000F (issued 30 December 2005)
- 2,500F (being withdrawn)
- 5,000F
- 10,000F
[edit] Coins
| 2 francs | 5 francs | 10 francs | 25 francs | 50 francs | 100 francs |
|---|---|---|---|---|---|
| ≈ 0.01 euro | ≈ 0.02 euro | ≈ 0.05 euro | ≈ 0.10 euro | ≈ 0.20 euro | |
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| Marianne | Coelacanth | Stars and crescent | Chicken eggs | Mosque | Fishing boat |
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| aluminium | aluminium | aluminium bronze | nickel | nickel-plated steel | nickel-plated steel |
| 27 mm | 31 mm | 22 mm | 20 mm | 24 mm | 28 mm |
| 2.2 grams | 3.75 g | 3.9 g | 6 g | 10 g |
Comorian coins have always been minted by the Monnaie de Paris. This is indicated by the cornucopia mint mark on the coins, visible to the left of the date. The coins are manufactured at their facility in Pessac, Gironde. No commemorative coins are available at the central bank.
The 5-franc coin is nicknamed reali, referring to the Spanish real, and the 2-franc coin is nicknamed nusu, meaning "half".
The 2-franc is no longer minted, but its 1964 colonial series coin is still legal tender. It and the 5- and 10-franc coins are rarely used because of their low value. The 25- and 100-franc coins contain the phrase "Augmentons la production alimentaire" (Let's increase food production). The 5-franc coin contains the phrase "Conférence Mondiale sur les Pêches" (World Conference on Fishing). Both of these phrases are references to programs by the United Nations Food and Agriculture Organization. Comoros is one of 114 countries that have issued FAO coins. More information on FAO coins can be found here.
[edit] Previous currencies of Comoros
[edit] 1889–1912
The first coins minted specifically for use in the Comoro Islands were those issued by Sultan Said Ali. Said Ali ben Said Omar was sultan ntibe of the sultanate of Bambao on the west coast of the island of Ngazidja (Grande Comore) and recognised by France, against all local tradition, as sultan of the entire island. In 1886, and at his request, the island became a French protectorate, a status it conserved until 1912.
Although his control over the island's fiscal policy was at best limited, Said Ali had three denominations struck at the Monnaie de Paris mint in 1889: 5 centimes, 10 centimes and 5 francs. This Comorian franc was equivalent to the French franc and divided into 100 centimes. The three coins in theory ceased to be valid in 1912, but the lower two denominations were still turning up in general circulation as late as 1930. The two bronze coins may still be found; although they are not in circulation, they are frequently used for magico-religious purposes. The silver 5-franc coin is very rare.
All three coins bore similar inscriptions, including the date 1308 AH, which corresponds to the Gregorian calendar years 1890/91 AD.
Denominations
- Coins: 5 centimes, 10 centimes, 5 francs
[edit] 1912–1925
In 1912, the Comoro Islands (Grand Comore, Mohéli, Anjouan and Mayotte) became a province of Madagascar, which was a French possession, and began to use the French banknotes and coinage circulating in that colony.
Denominations
- Coins: 5, 10, 25, 50 centimes, 1, 2 francs
- Notes: 5, 10, 50, 100, 500, 1000 francs
[edit] 1925–1945
On 1 July 1925, the French government formed an agreement with the Banque de Paris et des Pays-Bas to create the Banque de Madagascar, headquartered in Paris, and granted it a private monopoly to issue currency for the colony of Madagascar. A Malagasy franc (French: franc malgace) carried the same value as a French franc.
Denominations
- Coins: 5, 10, 25, 50 centimes; 1, 2 francs
- Notes: 5, 10, 20, 50, 100, 1000, 5000 francs
[edit] 1945–1962
When the Comoros Islands became a separate French territory in 1945, the name of the issuing bank was changed to the Banque de Madagascar et des Comores (still headquartered in Paris). A branch office opened in Comoros in 1953. On 26 December 1945, the Madagascar-Comores CFA franc replaced the Malagasy franc, and its value was fixed at 1.70 French francs. On 17 October 1948, the CFA franc was revalued to 2.00 French francs. While the banknotes were changed to reflect the new status of Comoros, the coins were not changed and bore only the name Madagascar.
In 1950, the French government took over majority ownership of the Banque de Madagascar et des Comores.
On 1 January 1960, the French franc was revalued, with 100 old francs becoming 1 new franc. (Décret n°59-1450 du 22 décembre 1959) The new exchange rate became 1 Madagascar-Comores CFA franc = 0.02 French francs.
On 26 June 1960, Madagascar gained independence from France, and the Institut d'Émission Malgache (headquartered in Antananarivo) was created to issue currency only for Madagascar. Madagascar left the CFA zone effective 1 July 1973.
Denominations
- Coins: 1, 2, 5, 10, 20 francs
- Notes: 50, 100, 500, 1000, 5000 francs
[edit] 1962–1974
The Comoros Islands remained a French possession. Loi ordinaire 62-873 du 31 juillet 1962, Article 12, allowed the Banque de Madagascar et des Comores to continue issuing notes in Comoros after Madagascar began issuing its own currency, but beginning 1 April 1962, they had "COMORES" overstamped on them. As per Décret 64-1038 du 07 octobre 1964, banknotes without the overstamp ceased to be legal tender on 31 December 1964.
Comoros continued to use Malagasy coins until 1964, when the Monnaie de Paris issued a series of coins specifically for Comoros (Arrêté du 30 avril 1964). It was at this time that the Comorian franc was no longer subdivided into centimes.
Denominations
- Coins: 1, 2, 5, 10, 20 francs
- Notes: 50, 100, 500, 1000, 5000 francs
[edit] 1975–1981
On 31 December 1974, the Institut d'Émission des Comores (headquartered in Paris) was created to issue currency for the colony of Comoros. In 1975, the islands of Grand Comore, Mohéli, and Anjouan declared their independence from France and formed the Islamic Federal Republic of the Comoros. The island of Mayotte remained under French administration. (Mayotte switched to the French franc and now uses the euro).
New banknotes were issued for the newly independent republic, and they began to replace the Banque de Madagascar et des Comores banknotes over a number of years. A 50-franc coin was created in 1975 and a 100-franc coin in 1977. The other colonial coins remained in circulation. It was at this time that Arabic replaced French on the reverse side of the coins and notes, and they began to take on their present look.
On 15 July 1977, the monetary institute was moved to Moroni. On 1 July 1981, the current treaty between France and Comoros was put into effect, the monetary institute was converted into Banque Centrale des Comores and began to issue the currency.
Denominations
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[edit] See also
[edit] References
- (French) Abal Anrabe Abdou Chacourou (2003). Franc comorien. Editions L'Harmattan. ISBN 2-7475-4843-0
[edit] External links
[edit] Official websites
- (French) Banque Centrale des Comores official site
- (French) Text of the 1979 Comorian Agreement of Monetary Cooperation at Banque de France
- (English) Decision of the Council of Europe on 23 November 1998 regarding the CFA and Comorian francs
- (English) Franc zone information at Banque de France
- (French) Franc zone information at Banque de France (in French, but more extensive than the English version)
- (French) Central Bank of Madagascar
[edit] Numismatic websites
- History of Comorian currencies
- Images of Comorian banknotes at Islamic Banknotes
- Images of Comorian banknotes at Banknote World
- Numismatics of Comoros
- Numismatics of Comoros by Dr Iain Walker
- Coins of Comoros
- Comoros at Ben's FAO Coins collection
- (French) La fabrication des monnaies utilisées par les Comoriens
- (French) "Les Monnaies à Madagascar", Louis Molet
[edit] Conversion rates
| Currencies named franc or similar | |
|---|---|
| Current | Burundian franc · CFA franc (Central African CFA franc · West African CFA franc) · CFP franc · Comorian franc · Congolese franc · Djiboutian franc · Guinean franc · Liechtenstein frank · Rwandan franc · Swiss franc · UIC franc |
| Defunct | Algerian franc · Belgian franc · Cambodian franc · French Camerounian franc · French franc · Katangan franc · Gold franc · Luxembourgish franc · Malagasy franc · Malian franc · Monegasque franc · Moroccan franc · New Hebrides franc · Réunion franc · Rwanda and Burundi franc · Saar franc · Tunisian franc · Westphalian Frank |
| Hypothetical | US occupation franc |
