Banky Foiben'i Madagasikara (BFM), is a public institution endowed with legal personality and which enjoys financial and operational autonomy in the exercise of its mission. The primary objective of BFM is to ensure the internal and external stability of the currencyThe primary objective of the Central Bank is to ensure the internal and external stability of the currency.

Without prejudice to this first objective, the Central Bank contributes to the financial stability and the solidity of the financial system of the Republic of Madagascar.

Without prejudice to the aforementioned objectives and within the framework of the attributions described below, the Central Bank supports the general economic policy of the Government.

In order to achieve the objectives described above, the Central Bank in respect of its attributions:

• issues banknotes and coins in the territory of the Republic of Madagascar,
• holds and manages official foreign exchange reserves,
• defines and implements monetary policy,
• defines and implements the exchange rate policy within the framework of the exchange rate regime decided by the Government,
• promotes the proper functioning of the payment system of the Republic of Madagascar,
• acts as lender of last resort,
• acts as state banker,
• acts as an adviser to the government,
• is the bank for credit institutions,
• collects information, produces and publishes statistics, particularly those relating to the monetary and external sector: balance of payments - international investment position - external debt,
• may exercise any other function which constitutes the necessary accessory to the aforementioned functions.

Other powers may be entrusted to the Central Bank by virtue of a law, provided that these do not affect its autonomy.

The Central Bank is prohibited from guaranteeing loans, advances or debts for the benefit of the State or institutions controlled by the State or any other entities.