AMEX-TRAVELLER's CHEQUES

Hi Willy,

The manager of the bank in Maroantsetra where I have my account won't take AMEX - the reason he gives is "too much fraud". From talking to him and from conversations I've had with other traveller's, I personally would be very reluctant to make my financial survival in Madagascar dependent on traveller's cheques whoever issues them.

I would go for cash - even in amounts of the level you mention. Split it between two people and distribute it among different types of belt out of sight and you should be OK.

By the way, Madagascar banks don't charge you for Visa withdrawals from ATMs, so that's one less charge.

Hello Marogisa,

thank you for your reply.

I have come across your name many times when on the L.PL-WEB.
Are you living/working in MADA, (since it seems you have an account with a MADA Bank there) or, are you a tour guide/travel agent?

Anyhow, in BRADT'S Madagascar Travel Book from 2006, it stipulates that: SOCIMAD & UCB Banks in MADA do take traveller's cheques.
Of course, I have read, over and over again, on L.P. WEB, that many people had problem in exchanging T/CH; and, that was the reason WHY I posted this question to which you answered.
We have travelled LATIN AMERICA, INDIA & S.E.ASIA for many years and do know, where/how on your body, you store CASH.
But, with an amount of EU 5,000 and more, it is (especially in hot countries) difficult to keep these Banknotes in uncreased and in fresh condition. Otherwise they are (foreign currencies notes) often NOT accepted, or, a much lower rate of exchange was offered. (INDONESIA, Sumatra especially, was and still is, ALWAYS a BIG problem in that respect).
Of course, such a problem can come, in ADDITION, that you lose your CASH, whether through an accident of any kind, or, (as it can be the case in every country) violant crime.

Guess, there is a BIG decision to be made, whether or not, to take such a lrg CASH amount on us.

Regards,

Willy

Hi Willy,

No, I'm neither a tour guide nor a travel agent. My day job in Germany enables me to visit Madagascar at least twice a year and on occasion gives me extended leave of absence which I've used to do some work together with the ANGAP-accredited guides in Masoala.

The problem with travellers cheques is that banks sometimes do and sometimes don't, and it seems to be unpredictable. If you talk to travellers you'll find some who had few if any problems and others who had really quite serious problems, which is why I say I would never want to actually make my financial survival dependent on them.

I've personally experienced a couple who were stranded in Maroantsetra because they had only travellers cheques and a Visa card. The bank refused to cash their cheques and the only bank in town is the Bank of Africa, which is the only bank in the country to accept Mastercard and refuse Visa.

The guy ended up selling his photographic equipment at below its real value to pay the outstanding bills and a ticket out.

On the condition of notes: I've had no problems with creased notes, and I have to fold some of them quite tightly, but stained notes and notes with even a one millimetre tear are frequently rejected. A real joke when you see the condition of some of the ariary notes in circulation! I pack my notes in plastic freezer bags and carry them in different types of Eaglecreek products.

Though I can easily understand your objections, you should probably look into the option of using a Visa card. ATMs are widespread now (big exception Maroantsetra), and it is very easy to make withdrawals. The BNI permits the largest single transaction - 385 000 ariary (in September this year). I found that out by trial and error - don't believe the guard who tells you the max is 350 000.

For cash, don't take Australian dollars - you'll probably have difficulty changing them outside Tana. The best currency to take is euros, and if you do take TCs, get them denominated in euro if you can. According to the UK foreign office, at least one Madagascar bank won't accept Thomas Cook cheques.

Thanks Marogisa,

yes, exactly the same as in SUMATRA. If the foreign notes are slightly stained, something written on it or have a minimal tear or are creased, they don't take them. Not at FACE VALUE anyhow. Their own RUPIAHS however can be in old newspaper condition!!
If on VISA a max. of 385.000 ariary on one transaction is allowed (is this PER DAY as well, or, can you make multiple transactions on one single day??) ) which is about US $ 200. Of course far not enough to pre-pay hire cars with driver for a longer period, airtickets etc.
It "seems", very clean CASH EUROS Notes, provides one with the least inconvenience, but the highest risk of a "NONE REFUNDLE LOSS", in an unfortunate event.

Well thanks again, for your detailed INFO; it's very valuable to get.

Regards,

Willy.

Hi Willy,

You can make multiple withdrawals of 385 000 if a) the ATM has enough notes and b) the bank behind your Visa card permits it. Mine, for example, won't permit more than two withdrawals at this level on the same calendar day, and of course the exact limit is specified in your home currency, so it'll vary with the exchange rate.

Remember that it's only the BNI bank that permits withdrawals at this level - other banks restrict their ATMs to amounts of either 200 000 or 250 000. As the amount of cash in the ATM decreases, the amount per transaction is progressively reduced. Late evenings and weekends are times when you may get caught out by this.

In my experience, you don't get offered an inferior rate for damaged notes in Madagascar. Either the bank accepts a note or you get a flat rejection. You can often have a nice friendly discussion about this, but you never get anywhere.

I haven't, as I said, had problems with creased notes - but if I did, I'd borrow an iron from wherever I was staying and iron them. Might not be advisable with your Aussie notes with their plastic bits, but it works with euros.

Thanks once again, Marogisa,

well, MADA (at least the foreign exchange system) seems to be far more complicated, than in most other "developing countries".
With our travel-plans there (hire a car/4WD & driver for most of the time, in different locations, to enjoy max. flexibility, some domestic air trips, at about EU 175 p.p; each way), then EUROS in Cash-Bank-Notes would be the ONLY way to go, despite the risk of loss.

Regards,

Willy