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Currency market : The ariary registers a clear improvement

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Currency market : The ariary registers a clear improvement

The BFM is committed to maintain this trend for the ariary

In an unexpected turn of events, the value of the ariary surged in the initial quarter of this year. Central Bank figures reveal a notable 6.2 % ascent in the national currency against the euro during this timeframe.

By the close of December 2023, the exchange rate teetered around 5,000 MGA for 1 EUR. However, this momentum tapered off, reverting to lower benchmarks in the first quarter of the current year.

Come March’s end, the euro was fetching 4,675 MGA on the currency market. Moreover, the ariary exhibited gains against other MID assets, notably a 4.8 % uptick against the US dollar. The BFM attributes this rise to a more conspicuous slowdown in purchases compared to the decline in bids, contributing to a relatively calm ambiance in the appliance market.

The Ministry of Economy and Finance points to repatriations and foreign currency sales from exported goods as pivotal factors propelling the ariary’s surge on the International Currency Market (MID). There’s even chatter about a possible « stabilization » of the Ariary. Central Bank intel further indicates a 15.5 % decline in imports, spanning various categories like food, raw materials, capital goods, consumer goods, and items from free-trade zones.

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