After independence from France, the privilege to issue banknotes was transferred to the "Institut d'Émission Malgache" on December 31, 1961. The CFA franc was replaced by the Malagasy franc on July 1, 1963. It was pegged to the French franc with the same value as the CFA franc (1 FRF = 50 MGF), guaranteed by the French treasury. Denominations were given both in francs and ariary, with 5 francs = 1 ariary. Madagascar left the CFA franc zone in 1972 and the Malagasy franc was declared inconvertible. Banknotes were issued by the "Institut d'Émission Malgache" until 1974 when the Banque Centrale de Madagascar (Central Bank of Madagascar) took over that function.