Franc Malagasy

Franc Malagasy
Country:	Madagascar
Subdivision:	100 centimes
ISO 4217 code :	MGF
Abbreviation:	Fmg, FMG
Exchange rate : (fixed)	1 Fmg = 0.2 ariary

The Malagasy Franc or Madagascar Franc was the currency of Madagascar from 1945 to 2003 . From August 1, 2003, he was gradually replaced by the Ariary . The conversion rate is 1 Ariary = 5 Francs Malagasy. Until further notice the banknotes of 500, 1000, 2500 and 5000 francs from the last series issued are legal tender , the higher values of 10,000 and 25,000 francs could be exchanged at the central bank until December 31, 2009.

history

During the first decades of French colonial rule, the French franc was used as the currency in Madagascar. After the establishment of the Banque de Madagascar on November 22, 1925, the issue of local banknotes at 5, 10, 20, 50, 100 and 1000 francs began between 1926 and 1928. Until 1929 the banknotes of the mother country remained legal tender. The coins used from 1922 onwards in denominations of 5, 10, 25, 50 centimes and 1 and 2 francs were issued by the French Chamber of Commerce ( Chambres de Commerce ). Due to the Second World War there was a shortage of these coins and in 1943 the colonial government issued coins with the image of the Lorraine cross to document the affiliation to Free France .

On December 26, 1945 there was a revaluation of the French colonial currencies with the establishment of a common CFA franc for Madagascar and the Comoros . The new currency (abbreviation XMCF ) remained pegged to the French franc at a ratio of 1: 1.7. Only after a further revaluation of the Franc Malagasy against the French Franc to 1: 2 did they begin to issue new coins in 1948. This series of coins remained in circulation until the 1960s and was gradually replaced by coins that are still valid today. (see → Ariary: Coins )

A new series of banknotes became necessary in 1950 when the central bank was renamed Banque de Madagascar et des Comores ; the banknotes were also in use in the Comoros . There these banknotes remained valid until the mid-1970s, but since the administrative separation from Madagascar with a red print. This series consisted of 50, 100, 500, 1000 and 5000 franc notes.

Two years after Madagascar's independence, the Institut d'Emission Madagascar was founded in 1962 and for the first time banknotes were issued which, in addition to the franc, also had a value in ariary. Madagascar lifted the peg to the French franc in 1972 and renamed the central bank to Banque Centrale de la République Malgache in June 1973 . In 1974/75, 1983–1992 and 1994–1998, new banknote series were issued. Due to the high inflation, from 1983 banknotes below 500 francs ceased to exist, but new maximums of 10,000 and 25,000 francs were issued. The lower values were replaced by coins of 10 and 20 ariary, which were not indicated in francs.

In a transition period from August 1, 2003 to January 1, 2005, the franc banknotes were gradually replaced by the new Ariary banknotes, although the value of the franc remained in small print on the first series of Ariary banknotes until January 2010.