Madagascar: Coins Issued and Used

The Banque de Madagascar was created on July 1, 1925 by the French government. The currency was issued by the government-owned Banque de Madagascar and was pegged at par to the French franc. Only banknotes were issued with French coins continuing to circulate. When the Comoro Islands became a separate French territory, the name of the issuing bank was changed to Banque de Madagascar et des Comores. The Madagascar-Comores CFA franc (XMCF) replaced the franc of Madagascar on December 26, 1945, with the creation of the other CFA francs. The CFA franc was worth 1.7 French francs until 1948 when a devaluation of the French currency increased the rate to 1 CFA franc = 2 French francs. When the new French franc was introduced in 1960, the rate became 1 CFA franc = 0.02 French francs.

After independence from France, the privilege to issue bank notes was transferred to the Institut d'Émission Malgache on December 31, 1961. The CFA franc was replaced by the Malagasy franc on July 1, 1963. It was pegged to the French franc with the same value as the CFA franc (1 FRF = 50 MGF), guaranteed by the French treasury. Denominations were given both in francs and ariary, with 5 francs = 1 ariary. Madagascar left the CFA franc zone in 1972 and the Malagasy franc was declared inconvertible. Banknotes were issued by the Institut d'Émission Malgache until 1974 when the Banque Centrale de Madagascar (Central Bank of Madagascar) took over that function.

The peg to the French franc was kept until 1982, when a series of devaluations began. Finally, the franc was floated freely in May 1994. On June 1, 1995, the exchange rate had dropped to 1 FRF = 777 MGF. On January 1, 2005, it was replaced by the ariary at a rate of 5 francs to the ariary. By then, the exchange rate was 1 FRF = 1758 MGF (with the FRF value converted from the Euro).