Malagasy franc

Malagasy franc
The last of Malagasy franc banknotes

The franc (French: franc malgache, ISO 4217 code MGF) was the currency of Madagascar until January 1, 2005. It was subdivided into 100 centimes.



The first francs to circulate in Madagascar were French francs. These were supplemented during the First World War by emergency issues, including issues of postage stamps fixed to pieces of card in denominations of 0.05 up to 2 francs.

The Malagasy franc was introduced on July 1, 1925, by the French government for use in the colony. 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 Malagasy franc 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).


1 franc 1948

The first Malagasy coins were issued in 1943 by the Free French. These were bronze 50 centime and 1 franc coins bearing the Cross of Lorraine symbol. In 1948, aluminum 1 and 2 franc coins were introduced, followed by aluminum 5 francs and aluminum bronze 10 and 20 francs in 1953.

From 1965, coins were issued denominated in both francs and ariary.


5 francs ca. 1937

Following emergency issues between 1914 and 1917 related to the availability of 5, 10 and 20 franc notes, distinct Malagasy notes were introduced in 1925 in denominations of 5, 10, 20, 50, 100 and 1000 francs. The lower three denominations were replaced by coins in the 1940s and 50s, with 5000 franc notes introduced in 1950.

From 1961, banknotes were issued denominated in both francs and ariary.

External links

Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Franc — The franc is the name of several currency units, most notably the French franc, the currency of France until it adopted the euro in 1999 (by law, 2002 de facto), and the Swiss franc, still a major world currency today due to the prominence of… …   Wikipedia

  • Malagasy —   The CURRENCY of the country is the Malagasy Franc. The corresponding SWIFT code is MGF …   International financial encyclopaedia

  • Malagasy ariary — ariary malgache (French) ISO 4217 code MGA User(s) …   Wikipedia

  • Franc Malagasy — Staat: Madagaskar Unterteilung: 100 Centimes ISO 4217 Code: MGF Abkürzung: Fmg Wechselkurs: (fix) 1 Fmg = 0,2 Ariary Der Franc Malagasy war von 192 …   Deutsch Wikipedia

  • Franc — Französisch Franc oder auf deutsch Franken ist eine Münz und Währungsbezeichnung aus Frankreich, die sich auf andere frankophone Länder ausgeweitet hat. Die Bezeichnung geht auf die Devise Francorum Rex ( König der Franken ) zurück, die auf… …   Deutsch Wikipedia

  • Comorian franc — franc comorien (French) فرنك قمري (Arabic) ISO 4217 code KMF User(s) …   Wikipedia

  • CFA franc — Usage of:      West African CFA franc      Central African CFA franc The CFA franc (in French: franc CFA [fʁɑ̃ seɛfɑ] …   Wikipedia

  • Congolese franc — This article is about the currency in the Democratic Republic of the Congo. For the Republic of Congo currency, see Central African CFA franc Congolese franc franc congolais (French) …   Wikipedia

  • Djiboutian franc — franc djibouti (French) الفرنك الجيبوتي (Arabic) …   Wikipedia

  • CFP franc — franc pacifique (French) ISO 4217 code XPF User(s) …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.