Central Bank of Madagascar

The Central Bank of Madagascar, known in Malagasy as Banky Foiben'i Madagasikara and commonly abbreviated BFM, is the monetary authority and central bank of Madagascar. Its offices are in Antananarivo, and its institutional role is tied to the country's monetary sovereignty, currency administration, and broader economic policy. The bank's stated mission is to work with the government, within the framework of financial laws, to support Madagascar's general economic policy and preserve the country's monetary reserves. The institution emerged from a longer monetary history connected to the Banque de Madagascar. That predecessor began issuing the Madagascar-Comoros CFA franc in 1925. Following the creation of the Territory of Comoros in 1945, the issuing institution became the Banque de Madagascar et des Comores. This arrangement reflected the monetary structures associated with French colonial administration and the wider CFA franc system in Africa. Madagascar's monetary framework changed after independence in 1960, when the country again issued a distinct Malagasy franc as the currencies of Madagascar and Comoros were separated. A further break occurred in 1973, when Madagascar left the CFA franc zone. The Malagasy franc was subsequently treated as inconvertible by the authorities of the Confederation Franc Africaine, and national coins and banknotes were issued by the Institut d'Émission Malgache. In 1974, the Banque Centrale de Madagascar was established, giving the country a dedicated central-bank institution. Since 2005, the bank has issued and administered the Malagasy ariary, Madagascar's current currency, which replaced the Malagasy franc as the country's monetary unit. BFM's responsibilities extend beyond banknote and coin issuance. Its activities include monetary functions, management of national monetary reserves, economic research, and work related to microfinance. The bank also participates in developing financial-inclusion policy and is a member of the Alliance for Financial Inclusion. Its supervisory relationship is associated with the Commission de Supervision Bancaire et Financière, a government financial-supervision body. The bank maintains a national operating network outside the capital. The documented network includes branches in Toamasina and Fianarantsoa, together with agency offices in Antsiranana, Nosy Be, Mahajanga, Sambava, Manakara, Tolagnaro, Morondava, and Toliary. This geographic presence supports the distribution and administration of currency-related services and the institution's engagement with Madagascar's financial system. As a public monetary institution rather than a commercial bank, BFM does not primarily market consumer banking products. Its principal public-facing functions are the issuance and stewardship of the national currency, implementation of monetary responsibilities, reserve management, economic analysis, and support for a sounder and more inclusive financial sector. The bank remains active, with Aivo Andrianarivelo serving as governor from January 2023 according to the referenced institutional history.

The Central Bank of Madagascar developed out of the monetary institutions that administered Madagascar's currency during the colonial and post-independence periods. The Banque de Madagascar began issuing the Madagascar-Comoros CFA franc in 1925. Its role was later reorganized in 1945, after the creation of the Territory of Comoros, when the Banque de Madagascar et des Comores was established. This institution operated within the monetary arrangements associated with French-administered territories and the CFA franc system. Madagascar's monetary position changed following independence from France in 1960. Madagascar and Comoros moved to separate currency arrangements, and Madagascar resumed issuing the Malagasy franc. The country subsequently made a more decisive break with the CFA franc system in 1973, when it left the CFA franc zone. The Malagasy franc was declared inconvertible by the authorities of the Confederation Franc Africaine. During the transition, Madagascar's coins and banknotes were issued by the Institut d'Émission Malgache. The Banque Centrale de Madagascar was formed in 1974 as the country's dedicated central bank. Its creation consolidated responsibility for monetary administration and currency issuance in a national institution. The bank's historical leadership included governors such as Leon Maxime Rajaobelina, Richard Randriamaholy, Blandin Razafimanjato, Raoul Joëlson Ravelomanana, Gaston Edouard Ravelojaona, Frédéric Rasamoely, Alain Rasolofondraibe, and Henri Rabarijohn, alongside two acting governors during the 2012–2014 transition period. A major later monetary change came in 2005, when the Malagasy ariary became Madagascar's currency. The ariary is issued by the central bank and replaced the Malagasy franc as the country's monetary unit. Currency issuance remains one of BFM's defining responsibilities, alongside preservation of national monetary reserves and cooperation with the government in support of the country's general economic policy. The contemporary institution also performs research and financial-sector functions. It maintains departments concerned with microfinance and economic research, and it participates in the development of financial-inclusion policy. BFM is a member of the Alliance for Financial Inclusion, reflecting its engagement with efforts to broaden access to formal financial services. The bank reports to or operates within a supervisory framework associated with the Commission de Supervision Bancaire et Financière. Although headquartered in Antananarivo, BFM has a wider territorial network. Its listed branches are in Toamasina and Fianarantsoa. Agency offices are located in Antsiranana, Nosy Be, Mahajanga, Sambava, Manakara, Tolagnaro, Morondava, and Toliary. The network gives the monetary authority an institutional presence across several important regions of Madagascar. Aivo Andrianarivelo has served as governor since January 2023, according to the referenced historical account.

• 2023

  Aivo Andrianarivelo becomes governor

  [1]Central Bank of Madagascaren.wikipedia.org

  Aivo Andrianarivelo began serving as governor in January 2023, following Henri Rabarijohn's tenure.

• 2005

  Malagasy ariary becomes the national currency

  [1]Central Bank of Madagascaren.wikipedia.org

  The ariary replaced the Malagasy franc as Madagascar's currency and has since been issued by the central bank.

• 1974

  Banque Centrale de Madagascar is established

  [1]Central Bank of Madagascaren.wikipedia.org

  The dedicated national central bank was formed after currency issuance had been handled by the Institut d'Émission Malgache.

• 1973

  Madagascar leaves the CFA franc zone

  [1]Central Bank of Madagascaren.wikipedia.org

  Madagascar exited the CFA franc zone, and the Malagasy franc became inconvertible under the monetary arrangements described in the historical record.

• 1960

  Madagascar resumes issuing a separate Malagasy franc

  [1]Central Bank of Madagascaren.wikipedia.org

  After independence, Madagascar's currency arrangements separated from those of Comoros and the Malagasy franc was issued again.

• 1945

  Banque de Madagascar et des Comores is formed

  [1]Central Bank of Madagascaren.wikipedia.org

  Following the creation of the Territory of Comoros, the earlier issuing institution was reorganized as the Banque de Madagascar et des Comores.

• 1925

  Banque de Madagascar begins issuing the Madagascar-Comoros CFA franc

  [1]Central Bank of Madagascaren.wikipedia.org

  The predecessor institution began issuing the Madagascar-Comoros CFA franc, establishing the monetary lineage from which Madagascar's later central bank developed.

Madagascar's sovereign monetary authority and central bank, combining currency administration, monetary functions, reserve management, economic research, and support for financial inclusion.

• National currency · 2005

  Malagasy ariary

  The Malagasy ariary is Madagascar's current monetary unit and the principal currency associated with the Central Bank of Madagascar. Introduced as the country's currency in 2005, it replaced the Malagasy franc. BFM is responsible for issuing the currency as part of its broader mandate over monetary administration and national reserves.

• Central-bank service · 1974

  Currency issuance

  BFM issues and administers Madagascar's coins and banknotes. This function is a core expression of the country's monetary sovereignty and connects the bank's historical role as a currency issuer with its present responsibility for the Malagasy ariary.

• Research and analysis

  Economic research

  The bank maintains an economic-research department that supports analysis of Madagascar's economy and informs its monetary and public-policy responsibilities. The available reference material identifies research as an established operational area but does not specify individual publications or programs.

• Financial-sector development

  Microfinance and financial-inclusion support

  BFM maintains a microfinance function and participates in developing financial-inclusion policy. Its membership in the Alliance for Financial Inclusion places the bank within an international network focused on expanding access to appropriate formal financial services.

• 2005

  Replacement of the Malagasy franc by the ariaryGeneration change

  Background

  Madagascar's monetary system had used the Malagasy franc after the country separated its currency arrangements from Comoros and later left the CFA franc zone.

  Action taken

  The Malagasy ariary became the national currency and was issued by the Central Bank of Madagascar.

  Aftermath

  The ariary remains Madagascar's currency and is the bank's principal currency-related offering.

  Source

• 1973

  Withdrawal from the CFA franc zoneStrategy

  Background

  Madagascar's post-independence monetary policy moved toward a separate national currency framework, distinct from the arrangements shared with Comoros and linked to the CFA franc system.

  Action taken

  Madagascar left the CFA franc zone and continued with the Malagasy franc under the new monetary arrangements.

  Aftermath

  The transition preceded the creation of the Banque Centrale de Madagascar in 1974 and strengthened the institutional basis for national currency administration.

  Source

1. 1Central Bank of Madagascaren.wikipedia.org