Best Bitcoin Exchange for Madagascar

What is the currency of Madagascar? With a socialist economy that lasted until the mid-1990s, Madagascar adopted the policy of liberalization and privatization of the World Bank and the International Monetary Fund. The strategy has brought the country on a slow but steady growth path from its previous extremely low levels. Agriculture, fisheries and forestry are the main pillars of the economy. They account for more than 25% of GDP and employment sources for more than 80% of the population. Although the financial sector remains relatively superficial and cannot provide funds for growth, growth in this sector cannot be underestimated. The financial sector consists of 11 banks and several financial institutions and microfinance institutions. Madagascar’s currency has stabilized quite a bit over the past ten years, indicating good news.

Madagascan Ariary

The official currency of Madagascar is Ariary. It has the ISO standard code of MGA and is marked with the symbol “Ar”. The currency is divided into 5 iraimbilanja and is one of the two non-decimal currencies circulating in the world today, the other being the Ouguiya of Mauritania. The name of the currency was derived from the pre-colonial currency, the silver dollar. Iraimbilanja literally means “an iron weight”, named after the fifth value of an old coin. Madagascar Ariary replaced the franc as Madagascar’s official currency in January 1, 2005.

Development of Madagascar Ariary

Madagascan Ariary was first circulated in 1961 to replace the Madagascan franc at an exchange rate of one Ariary for 5 Madagascan francs. The coins and banknotes of the time were issued in both franc and Ariary denominations. Iraimbilanja was one fifth of an Ariary and therefore equal to the Franc. At first, the franc coins and notes were more popular than the Ariary. In 1978, however, more high-quality coins were issued in the denominations of Ariary alone. In 1993 ariary became even more valuable with the publication of 500 and 5,000 Ariary banknotes alongside 2,500 and 25,000 franc banknotes. The Ariary denominations printed in July 2003 were prominent, while the Franc denominations were short-run. Lower denominations of Ariar coins were also designed, making Ariary more popular than the franc. In January 1, 2005, the franc was officially replaced by Madagascar Ariary as the national currency.

Coins

In 1965, 1- and 2-franc coins were issued, followed by the 5-franc coin, which corresponded to 1-ariary in 1966. 10 and 20 franc coins corresponding to 2 and 4 ariary respectively were issued in 1970. At 1978, 10 and 20 the Ariary coins were in circulation, followed by 5 and 50 in 1992. At 2003, most XARUMX and 1 coins did not have Swiss franc denominations.

Banknotes

The first banknotes, in various denominations ranging from 50 to 5,000, were introduced in 1961 by the Institut d’Emission Malgache. The actual banknotes were an overprint of the former banknotes provided by the Bank of Madagascar and the Comoros, which issued banknotes denominated in the banknote market. The Central Bank of Madagascar, established in June 1973, took over the printing and circulation of banknotes leading to the issue of new banknotes in 1974 in the same denominations as the previous banknotes. 500 and 5000 Ariary banknotes were introduced in 1993. Several other denominations, including 100, 200, 2000 and 10,000, were introduced in 2003-2004.

Tips for Cash Payment and Money Exchange in Madagascar

• The smallest payment units are 1 and 2 Iraimbilanja coins, which you will rarely need, however, because with such currency values mostly with notes is paid and small change almost nobody wants to have.
• In remote regions the notes must not be too big, because otherwise there is no change and the sellers may have to walk far to change.
• Euro notes can be exchanged into the local currency at banks and exchange offices in larger cities.
• The Madagascan currency cannot be exchanged in Germany. Only at the airport after the arrival national currency can be withdrawn (Ankuftshalle/Schalter) or exchanged (Aussenbereich/Schalter).
• Hotels also offer money exchange, but at a lower rate.
• Cash is generally the best payment method in Madagascar.

Tips for payment with EC/credit card in Madagascar

• Travellers can withdraw cash at ATMs with a credit card, less often with an EC card (Visa rather than Mastercard, and Maestro not mandatory).
• Credit cards are also only accepted irregularly in tourist centres (larger hotels, restaurants, shops, travel agencies, airlines and supermarkets, Visa rather than Mastercard), as the telephone lines are not stable enough to make queries; outside the centres, you should only rely on cash as a means of payment.
• Ideally, you should always have enough cash with you, although there is a partial withdrawal limit per transaction (about 100 euros) and week (less than 500 euros), so it is advisable to keep a reserve of cash in euro banknotes.
• You should not assume that ATMs always work.
• A credit card is essential for withdrawing money in Madagascar. Due to the low withdrawal volume, a credit card without a withdrawal fee and with free withdrawals worldwide, such as the Visa Card from DKB, is recommended. The only requirement is a monthly receipt of 700 euros on the current account.