The Malagasy Currency

The Ariary is the currency of the Republic of Madagascar. Before the French colonial period, the Ariary was the currency in use during the Kingdom of Madagascar in the 19th century. The term Ariary comes from the Arabic word “al rial,” referring to the monetary system in the Arabian Peninsula. Trade has always been very important for several centuries between Madagascar and the Arab world.

 The value of the Ariary

The Ariary is part of the currencies that are not traded on the international market; it is only valid within the territory of Madagascar. You cannot use it outside the country, nor can you obtain it outside Madagascar.

When it was introduced in 2003, the exchange rate of the Ariary was 1 EUR for 1,400 MGA. However, since then, it has continued to depreciate. Indeed, to date, this rate has more than tripled since 2003, with 1 EUR now equal to 4,080 MGA.

There are banknotes of the following denominations:

• 10 000 Ar (iray alina)
• 5 000 Ar (dimy arivo)
• 2 000 Ar (roa arivo)
• 1 000 Ar (arivo)
• 500 Ar (diman-jato)
• 200 Ar (roan-jato)
• 100 Ar (ariary zato)

Some banknotes, such as those of 1,000, 500, 200, and 100 Ar, still bear the indication of their value in Malagasy Francs, written in small characters.

History – French Franc, Malagasy Franc.

During the colonial period, the French Franc was the monetary system used in Madagascar. Starting in 1960, with the independence of Madagascar, the French Franc was replaced by the Malagasy Franc (FMG). In June 2003, President Marc Ravalomanana introduced a new monetary unit, reviving the old currency: the Ariary. The Ariary replaced the Malagasy Franc issued by the Central Bank of Madagascar.

It is important to note that the Malagasy Franc (FMG) remains the reference currency for a majority of people (small businesses, markets, etc.). The fixed conversion rate is 1 Ariary for 5 FMG. It's important to keep this in mind to avoid any misunderstandings or confusion.