The Madagascar Ariary (MGA) is the official currency of Madagascar, an island country located off the southeastern coast of Africa.
The Ariary was introduced in 2005, replacing the Malagasy Franc at a rate of 1 Ariary = 5 Francs.
The Central Bank of Madagascar (Banque Centrale de Madagascar) is responsible for issuing and managing the Madagascar Ariary.
Subdivisions and Denominations
The Madagascar Ariary is not subdivided into smaller units.
Coins are issued in denominations of 1, 2, 5, 10, 20, and 50 Ariary, as well as 100, 200, and 500 Ariary.
Banknotes are available in denominations of 100, 200, 500, 1000, 2000, 5000, 10,000, and 20,000 Ariary.
Economy
Madagascar’s economy is largely based on agriculture, with the majority of the population engaged in subsistence farming.
The country produces a variety of crops, including rice, coffee, vanilla, cloves, and lychees. Madagascar is also known for its unique biodiversity, and eco-tourism is an important and growing industry.
The country faces several economic challenges, such as a lack of infrastructure, political instability, and widespread poverty.
In recent years, Madagascar has implemented economic reforms aimed at promoting growth, attracting foreign investment, and improving living standards.
Exchange Rate and Inflation
The Madagascar Ariary has experienced significant inflation and depreciation in the past.
The exchange rate of the Ariary against major currencies like the US Dollar and the Euro can fluctuate widely, affecting import and export costs, as well as domestic prices.
The Central Bank of Madagascar’s monetary policy focuses on maintaining price stability and managing inflation to support economic growth.
Summary
In summary, the Madagascar Ariary is the official currency of Madagascar, with the Central Bank of Madagascar responsible for its issuance and management.
The currency is not subdivided into smaller units and is issued in various coin and banknote denominations.
Madagascar’s economy is primarily based on agriculture and eco-tourism, with the country facing several economic challenges.
The Central Bank of Madagascar’s monetary policy focuses on maintaining price stability and managing inflation to support economic growth.