Comoros is a member of the Franc Zone, which it joined in 1976. The national currency, the Comoran franc (KMF), is pegged to the French franc and is fully convertible. This arrangement has provided considerable advantages in terms of exchange rate stability and low inflation, but the Franc Zone has also placed restrictions on public sector budget deficits. Some of the stability associated with Franc Zone membership was undermined by a 50 percent currency devaluation that took place in January 1994. Now that France is a member of the European Monetary Union (EMU), the peg to the French franc also implies a peg to the euro.