Madagascar's official currency is the ariary, introduced in 2005 to replace the Malagasy franc at a conversion rate of five francs to one ariary. The ariary subdivides into five iraimbilanja, making Madagascar one of only two countries worldwide using a non-decimal currency system alongside Mauritania. Banknotes circulate in denominations of 100, 200, 500, 1,000, 2,000, 5,000, 10,000, and 20,000 ariary. The 100 ariary note features the Avenue of the Baobabs, the 500 ariary depicts zebu cattle in the Malagasy highlands, and the 10,000 ariary shows Tsingy de Bemaraha formations. Coins exist in denominations of 1, 2, 5, 10, 20, and 50 ariary, though coins below 10 ariary rarely appear in circulation outside Antananarivo. The Central Bank of Madagascar (Banky Foiben'i Madagasikara) issues currency and sets monetary policy from its headquarters in Antananarivo.
Foreign currency exchange operates primarily through banks and licensed exchange bureaus in Antananarivo, Toamasina, Mahajanga, Antsiranana, and Nosy Be. Major banks include BNI Madagascar (Banky Nasionaly Nampandroso Varotra), BFV-Société Générale, and Bank of Africa Madagascar. Exchange rates at banks typically differ from hotel rates by 3-8 percent. The euro and US dollar convert most readily, with the South African rand accepted at some northern tourist centers near Nosy Be. Traveler's checks saw declining acceptance after 2010, with most banks in Antananarivo discontinuing check services by 2015. Currency declaration is legally required for amounts exceeding 400,000 ariary or its foreign currency equivalent when entering or leaving Madagascar, though enforcement varies at Ivato International Airport versus smaller entry points like Toamasina port.
ATMs operate in Antananarivo, Antsirabe, Fianarantsoa, Toliara, Mahajanga, Antsiranana, and Toamasina, with the capital hosting approximately 40 machines accepting international cards. The Visa network connects more reliably than Mastercard across Madagascar's ATM infrastructure. BNI Madagascar and BFV-Société Générale machines typically accept both networks, while smaller banks like BMOI (Banque Malgache de l'Océan Indien) function primarily with Visa. Daily withdrawal limits range from 400,000 to 600,000 ariary depending on the bank, equivalent to approximately 85-130 US dollars at 2024 exchange rates. ATMs in smaller cities like Morondava, Manakara, and Hell-Ville on Nosy Be experience frequent cash shortages, particularly during high tourist season from July through September. Machines outside major cities often remain non-functional for weeks following cyclone damage, as occurred in Toamasina after Cyclone Batsirai in February 2022.
Credit card acceptance concentrates in upscale hotels and restaurants in Antananarivo and tourist zones around Nosy Be, Île Sainte-Marie, and Andasibe-Mantadia National Park. Visa cards process more successfully than Mastercard or American Express. The Sakamanga Hotel in Antananarivo, Hotel Colbert, and Le Louvre Hotel accept major credit cards, charging a 3-5 percent processing fee that appears separately on bills. Restaurants outside hotel properties typically operate cash-only, including establishments in Antananarivo's Analakely market district. National parks operated by Madagascar National Parks (MNP) require ariary cash payment for entrance fees. Andasibe-Mantadia charges 55,000 ariary for foreign adults, Ranomafana charges 55,000 ariary, and Tsingy de Bemaraha charges 65,000 ariary as of 2024. Guide fees add 40,000-80,000 ariary per day depending on park difficulty and group size.
Mobile money services through Airtel Money, Orange Money, and Telma MVola process an estimated 65 percent of domestic transactions in urban Madagascar as of 2023 data from the Central Bank. Airtel Money operates 1,200 agent locations nationwide, Orange Money maintains approximately 2,000 agents, and Telma MVola runs 800 agents. Account opening requires a Malagasy national ID card or passport with residence permit. Tourist visitors cannot open mobile money accounts without formal residence documentation. Merchants in Antananarivo's larger markets including Analakely and Anosibe accept mobile money transfers, displaying orange or red signs indicating their service provider. Transaction fees for mobile money transfers start at 100 ariary for amounts under 5,000 ariary and scale to 1,000 ariary for transfers between 100,000-200,000 ariary. Cash withdrawal from mobile money accounts costs 1-2 percent of the withdrawal amount.
The ariary exchange rate fluctuates within a managed float system. The rate moved from approximately 3,200 ariary per US dollar in January 2020 to 4,600 ariary per dollar by December 2023, representing a 43 percent depreciation over four years. The currency weakened following COVID-19 border closures that eliminated tourism revenue between March 2020 and October 2021. Political instability surrounding the 2018 presidential election when Andry Rajoelina contested results against Marc Ravalomanana caused temporary exchange rate volatility, with the ariary dropping from 3,350 to 3,580 per dollar between November 2018 and January 2019. Inflation averaged 5.8 percent annually between 2019-2023 according to Central Bank reporting. Rice price inflation specifically reached 8-12 percent in years following cyclone damage to coastal growing regions, as occurred after Cyclone Enawo struck Antalaha and surrounding vanilla-growing northeastern areas in March 2017.
Internet connectivity in Madagascar relies on undersea fiber optic cables that landed in Toamasina in 2009 with the LION2 cable connecting to Kenya and the EASSY cable connecting to South Africa. The METISS cable added capacity in 2019, linking Madagascar to Mayotte and South Africa. Despite fiber infrastructure, Madagascar's average internet speed measured 6.2 megabits per second for fixed broadband in 2023 according to Ookla data, ranking below Mauritius at 58 megabits per second and significantly below South Africa at 42 megabits per second. Mobile internet speeds averaged 14.3 megabits per second, reflecting heavier infrastructure investment in cellular networks compared to fixed broadband.
Three mobile operators provide cellular and internet service across Madagascar: Telma, Airtel Madagascar, and Orange Madagascar. Telma commands approximately 50 percent market share with 6.8 million subscribers as of 2023, Airtel holds 30 percent with 4.1 million subscribers, and Orange maintains 20 percent with 2.7 million subscribers. Telma operates the most extensive 4G network covering Antananarivo, Toamasina, Mahajanga, Antsirabe, Fianarantsoa, Toliara, and Antsiranana. Airtel's 4G network concentrates in Antananarivo and Toamasina with expanding coverage to Antsirabe and coastal tourist zones. Orange provides 4G primarily in Antananarivo and Nosy Be. 3G coverage extends to most provincial capitals and Route Nationale 7 from Antananarivo south to Toliara, though speeds often measure below 2 megabits per second during peak evening hours.
Tourist SIM cards sell at operator stores in Antananarivo's Ivato International Airport immediately after customs clearance. Telma charges 10,000 ariary for a tourist SIM package including 2 gigabytes data valid 30 days. Airtel offers 3 gigabytes for 15,000 ariary valid 30 days. Orange sells 2.5 gigabytes for 12,000 ariary valid 30 days. Registration requires passport presentation and completes within 10 minutes at airport kiosks. Operator stores in downtown Antananarivo along Avenue de l'Indépendance provide additional SIM purchases and data top-ups. Data packages reload at numerous kiosks displaying operator logos throughout cities. A 5-gigabyte monthly package costs approximately 25,000-30,000 ariary across operators.