KMF
Candlefocus EditorComoros is one of the poorest and least economically developed countries in the world. Poor economic conditions often lead to high unemployment, low wages and inadequate infrastructure. This lack of economic stability has made the KMF a very volatile currency and its value is highly dependent on the whims of the European Central Bank (ECB), to which it is tied. For example, when the ECB lowered its key interest rate in February 2020, the KMF was not affected and continued to stay at its peg rate with the Euro.
The Comorian Franc is used to facilitate trade both within Comoros and with other countries. It is also slowly beginning to be accepted internationally as a form of payment for goods and services as it gains more credibility and stability.
Despite the fact that the KMF has remained relatively stable for the past few years, the economic future of Comoros remains uncertain due to the country’s fragile political situation and lack of investment in economic development. This makes the KMF a risky investment, as its value could easily decrease due to unforeseen political and economic shocks.
Due to the lack of transparency and difficulty of obtaining reliable economic data, it is difficult to make long-term predictions regarding the Comorian franc’s future. Therefore, investing in the KMF should be undertaken with caution, as the future of the currency’s value remains uncertain.