The Union of Comoros is a sovereign island nation in the Indian Ocean west of Madagascar's northern tip, east of Mozambique, and off the east coast of the African continent. The Comorian franc (KMF) is their official currency, nominally subdivided into 100 centimes, although centime denominations are yet to been issued. In 1920, the first Comorian paper money was issued. An emergency issue of Madagascar postage stamps was fixed to it, which allows them to be circulated as money. Article 12 of the Loi Ordinaire 62-873 du 31 Juillet 1962 allowed the continuation of issuing notes in Comoros by the Banque de Madagascar et des Comores to continue after Madagascar began issuing its currency. Starting 1 April 1962, the notes had "COMORES" overstamped on them, and on 31 December 1964, banknotes with no overstamp stopped being legal tender.
The overstamped notes continue to circulate until 1976. Then, 500, 1000, and 5000 francs were introduced by the Institut d'Émission des Comores. The bank took over the production of paper money in 1984. In 1997, 2500 and 10,000 franc notes were introduced, and in 2005, 2000 francs. The Banque de France prints the Comorian banknotes at their paper mill. Franc notes dated 2005, and 2006 (500, 1000, 2000, 5000, and 10,000) contain the EURion constellation, along with further improved security features making them more difficult to counterfeit.
Comoros has one of the smallest and poorest economies in the world. The nation's workforce has a low level of education, and there are not sufficient natural resources available either to use as exports or for residents.
The primary industries of Comoros, which are tourism and fishing, are vulnerable to its sporadic volcanic activity and extreme weather conditions. Consequently, despite a relatively low unemployment rate ranging between 6% to 10%, approximately half of the nation's 851,000 citizens live below the poverty line. Comoros' population is mainly young—around 40% of citizens are 14 years old or younger.
Agriculture is vital to the country's local economy, so is the income generated by its three major exports, a perfume essence known as ylang-ylang, vanilla, and cloves. Despite Comoros' cultivable land, fertile soil, and massive fishing industry, the country still imports about 70 percent of its food. For 2019, Comoros saw solid GDP growth of 1.9%, with inflation at 2%.