When you say the name Madagascar, the first thing that comes to most people’s minds is the movie based on a jungle in South Africa. But, Madagascar is more than just a movie. The second-largest island country in the world, Madagascar, has a long history. Because of its geographical location has been an important place that makes trade possible, connecting many lands through the Indian Ocean. This could be the reason that the population in Madagascar is growing due to its good resources.
What is the Main Currency in Madagascar?
The main currency in Madagascar is Malagasy Ariary which Madagascar currency code is Ar. Malagasy Ariary means silver dollar. Ariary is subdivided into 5 iraimbilanjais as a non-decimal currency, which means division units are not based on a power of ten.
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Madagascar is an island country in the Indian Ocean. It works as a virtual port connecting India and East Africa. Being an important port for trading, it encouraged Madagascar to increase its exports. The rich resources available on the island helped the country improve its exports and grow from the low level in the past. Madagascar exports mainly agricultural and forestry products. Being an island, fishing is also prevalent here. This whole account accounts for approximately 25% of the country’s GDP.
After years of being discovered by Portugal Voyagers, Madagascar is now a socialist economy that follows the liberalized policies of the World Bank and the IMF.
Before the Malagasy Ariary was introduced, Malagasy Franc was widely used on the island. Even after Ar was introduced in 1961, Malagasy Franc enjoyed popularity for a few years. Ar was valued at 5 Francs.
In 1978, there was an increase in the use of Malagasy Ariary over Francs. The increased usage could be the banknotes with denominations 500 and 5000 that made the exchange convenient. Against this, Francs were also introduced in denominations 2,500 and 25,000.
The issuing authorities, keeping the demand of these currencies in mind, issued the currencies accordingly. They gave more banknotes for Ariary as compared to Francs and also introduced lower denominations for Ariary currency. Thus, on the first day of the year 2005, Malagasy Ariary was declared the official currency of Madagascar. The central bank of Madagascar, Banque Centrale de Madagascar, is responsible for issuing the Malagasy Ariary.