Includes how foreign exchange is managed and implications for U.S. business;
Last Published: 2/28/2017
Since May 1994, an inter-bank foreign exchange market (MID) has set daily the rate of the Malagasy currency (MGA).   At the end of July 2005, the organization and the operation of the inter-bank foreign exchange market were improved by the adoption of a continuous system of quotation of the two main currencies of reference, the U.S. dollar and the Euro.  Since 1996, the GOM has lifted all restrictions on current payment and transfers and has accepted the obligations of Article VII of the IMF Articles of Agreement to abolish exchange controls.  However, on July 11, 2004, following a significant depreciation of the Malagasy currency, the GOM adopted a law stating that residents are not authorized to transfer foreign currency to another foreign currency bank account except within the MID.  Between EPZ companies, foreign currency transfers are allowed.

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