Madagascar Ariary (MGA) is the official currency of Madagascar. Madagascar is an island nation off the southeast coast of Africa, is a captivating destination known for its diverse wildlife, stunning landscapes, and unique culture. we will delve into the details of the Malagasy Ariary (MGA), providing you with valuable insights to navigate your financial transactions seamlessly.

What is the Madagascar Ariary (MGA)

Madagascar Ariary (MGA) is the official currency of Madagascar. The currency is non-decimal, so it isn’t divided into 100 smaller units. Rather, it is divided into 5 smaller units called Iraimbilanja. While this might seem unusual to those accustomed to decimal currencies, it is a fascinating aspect of Madagascar’s unique monetary system.

History of Madagascar Ariary (MGA)

Madagascar Ariary was introduced in 1961, replacing the Malagasy Franc. It was initially valued at 5 Francs. Over the years, the Ariary has undergone several changes, including the introduction of new banknotes and coins. In 2005, the Ariary officially replaced the Franc as the sole legal tender in Madagascar.

Madagascar Ariary (MGA) Currency Exchange

The Central Bank of Madagascar (Banque Centrale de Madagascar) is responsible for issuing and managing the Madagascar Ariary. MGA Coins are available in denominations of 1, 2, 5, 10, 20, and 50 Ariary, and also in 100, 200, and 500 Ariary denominations. Banknotes are available in denominations of 100, 200, 500, 1000, 2000, 5000, 10,000, and 20,000 Ariary.

Madagascar Economy

Madagascar economy is largely based on agriculture, with the majority of the population engaged in subsistence farming.

They produce a variety of crops, including rice, coffee, vanilla, cloves, and lychees. They are famous for their unique biodiversity and eco-tourism. The country faces several economic challenges, like lack of infrastructure, political instability, and widespread poverty.

In past years, Madagascar implemented economic reforms targeted at promoting growth, attracting foreign investment, and improving living standards.

Madagascar Ariary Exchange Rate and Inflation

Madagascar Ariary has experienced significant inflation and depreciation in the past. And the exchange rate of Madagascar Ariary against major currencies like the US Dollar and the Euro fluctuates, thereby affecting domestic prices and import and export costs. The central bank’s monetary policy aims at maintaining price stability and managing inflation to support economic growth.

Summary

In summary, the Madagascar Ariary MGA is the official currency of Madagascar, with the Central Bank of Madagascar responsible for its issuring and managing the MGA. The central bank issues the currency in various coin and banknote denominations, without subdividing it into smaller units.