The Ariary was introduced in 1961, replacing the Malagasy Franc at 1 Ariary = 5 Francs.
Since 1961, coins and banknotes have been issued in both Francs and Ariary.
At first, the Franc currency was more popular, but by 1978 the Ariary currency was more valued.
In 1993, the Ariary became still more popular when new 500 and 5,000 Ariary banknotes were released, together with 2,500 and 25,000 Franc banknotes.
Both Ariary and Franc banknotes were released on July 31, 2003 in prominent denominations. However, fewer Franc banknotes were printed. Lower denominations of Ariary coins were also issued in the same year.
On January 1, 2005, the Ariary replaced the Franc as the official currency of Madagascar.