Cash has a tough skin. According to the annual report of the BFM (Banque Foiben’i Madagasikara) published on October 31, the amount of banknotes and currencies in circulation in Malagasy territory amounts to 4,897.3 billion ariary in 2022, compared to 4,501 .7 billion ariary in 2021, an increase of 8.8%.
Concerning the composition of banknote circulation, the four most used banknote denominations are: banknotes of 20,000 ariary (26.1%), 100 ariary (18.8%), 10,000 ariary (14%) and 200 ariary (13.9%).
The country’s economy remains dominated by the use of cash, despite new trends. However, the use of Mobile Money at the end of 2022 represents nearly 32.2% of the urban population, compared to 27.1% at the end of 2021.
In recent years, payment methods have multiplied. New proximity or contactless payment services provide enhanced functionalities for users.
New variations of payment, such as the QR code and online payment, are starting to make their way into the Malagasy landscape, but remain marginal compared to other traditional payment services and means, notes this report from the central bank.
Compared to the 2021 financial year, the number of tickets paid and withdrawn from BFM counters in 2022 saw increases of 4.9% and 6.7% respectively. Following the same trend, in terms of value, payments recorded a rebound of 17.4%, compared to 17.5% for withdrawals. These increases are generally due to the dynamics of economic activities in 2022 compared to 2021.