The Malagasy currency is called Malagasy franc or Franc Malgache, abbreviated as FMG. In mid-1995, $1.00 bought 3700FMG. Bills and coins are denominated either in francs or in a popularly-used unit called ariary, or both. One ariary equals five francs.

FMG are bought only at banks and agreed exchange booths in hotels and the Ivato airport. The hotels' exchange rate is a little bit less favorable than the banks'.

The Ivato exchange window is opened when international flights arrive or leave. When you arrive in Madagascar, the immigration officer gives you forms to declare the exact amount of foreign money you are bringing into the country. After stamping the forms, the officer gives you one copy to carry with you. Each time you buy FMG, the bank or hotel clerk verifies your identity and writes in the form how much is exchanged. When you leave the country, you give back the form to the emigration officer, who may ask to see and count the remaining foreign money: what you have declared on the way in, minus what was exchanged according to the form, should equal what the officer is counting. Any missing amount might be construed as having been exchanged outside the legal system.

FMG bills are not allowed to leave the country (except a small number to keep as souvenir). The emigration officer will ask you to surrender them. Therefore, do not buy more FMG that you are planning to spend. But do set aside about 30,000 FMG for that last-minute, always-forgotten expense: the airport tax.

Credit Cards

Credit cards are slowly gaining acceptance but their usage is far from widespread. Major hotels, major travel agencies, Air Madagascar and some stores accept one or more of the following cards: Master Charge, Visa, American Express, Eurocard, Diner's Club, Carte Blanche, UATP Air Travel card. The bank BTM accepts to give cash advances from Master Card.

Double Tariffs

Hotel rooms and air fare are more expensive for non-residents than residents. Non-residents are quoted prices generally in French francs with an exchange rate that works out to an FMG figure about twice the price paid by residents. It may be worthwhile to note at this point that the average income of residents is $250 a year.

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