Converting from Malagasy Ariary (MGA) to UAE Dirham (AED)

What is Malagasy Ariary (MGA)

The Malagasy Ariary (MGA) is the official currency of Madagascar, an island nation located in the Indian Ocean. The currency was introduced in 2005, replacing the previous Malagasy franc at a rate of 1 ariary to 5 francs. The name "ariary" is derived from the Malagasy word for "money."

The ariary is subdivided into 5 iraimbilanja, although the latter is rarely used in everyday transactions. Coins are issued in denominations of 1, 5, 10, 20, 50, and 100 ariary, while banknotes are available in values of 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, and 100,000 ariary. The notes feature important cultural and historical figures from Madagascar, as well as images representing the country's rich biodiversity.

As a developing nation, Madagascar's currency can experience volatility influenced by various factors, including economic stability, inflation rates, and trade balances. This volatility means that individuals and businesses that deal with the ariary may need to monitor exchange rates closely, especially when converting to or from other currencies.

What is UAE Dirham (AED)

The UAE Dirham (AED) is the official currency of the United Arab Emirates (UAE), a federation of seven emirates located in the southeastern corner of the Arabian Peninsula. The dirham was introduced in 1973, replacing the Qatar and Dubai riyal at a rate of 1 dirham to 10 riyals. The term "dirham" has Arabic origins and is historically linked to ancient coins used across the region.

The dirham is subdivided into 100 fils. Coins are issued in denominations of 1, 5, 10, 25, 50 fils, and 1 dirham, while banknotes are available in values of 5, 10, 20, 50, 100, 200, 500, and 1,000 dirhams. The currency design showcases national symbols and historical figures from the UAE, reflecting its cultural heritage and modern achievements.

The UAE's economy is one of the strongest in the region, largely due to its rich oil reserves and a diversified economic base that includes tourism, trade, and finance. Consequently, the dirham tends to remain stable and is often pegged to the US dollar, making it a reliable currency for international transactions.

Converting Between MGA and AED

When converting from Malagasy ariary (MGA) to UAE dirham (AED), it is crucial to check the latest exchange rates, as they fluctuate based on various economic factors. For example, if the exchange rate is ＄1 AED = 700 MGA＄, one would perform the conversion as follows:

Amount in MGA × 0.0014 = Amount in AED

This means if you had 1,000 MGA, it would be equivalent to approximately 1.4 AED. Always consider transaction fees that may apply when exchanging currencies, whether at banks or currency exchange offices.