Forex trading is legal in Madagascar, operating under the country's established financial regulatory framework. The Malagasy government has structured its foreign exchange policies in accordance with international standards, particularly following the IMF's Article VIII statutory framework which prohibits direct government limitation on foreign exchange use and availability (1). Madagascar maintains an autonomous Central Bank (Banque Centrale de Madagascar) that oversees monetary policy and foreign exchange operations, ensuring proper regulation of currency trading activities.
The regulatory environment for forex trading in Madagascar is governed by the country's Investment Law (2007-036) and overseen by the Ministry of Finance. While some foreign exchange controls exist, they are not especially restrictive, and the government allows free transfer of funds abroad without prior authorization for legitimate investment purposes (1). The Central Bank reserves the right to intervene in currency markets to avoid abrupt variations in exchange rates, typically allowing the local currency to fluctuate within a band of 2 percent (1).
"There are repatriation requirements for export earnings, and some specific capital controls, but Madagascar abides by the IMF's Article VIII statutory framework, which prohibits direct government limitation on foreign exchange use and availability."
Individual traders and companies engaged in forex trading must comply with Madagascar's foreign exchange regulations, including mandatory repatriation requirements for overseas earnings and proper declaration of foreign currency transactions. The banking sector, comprised of 11 commercial banks mostly subsidiaries of foreign institutions, provides the infrastructure for legitimate forex trading activities (1). Trading platforms and brokers operating in Madagascar must adhere to the regulatory oversight provided by the Commission de Supervision Bancaire et Financière, which supervises the country's banking and financial sector (2).
Source:
https://www.state.gov/reports/2017-investment-climate-statements/madagascar/
https://www.trade.gov/country-commercial-guides/madagascar-trade-financing
Last updated: 01-06-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
