MEF aims to stabilize the Ariary’s rise

Ariary continues to rise in value against Euro. This presents a significant appreciation on the interbank currency market (MID).

Between January 2 and March 28, 2024, Madagascar’s national currency gained 309.42 points in value against the euro, setting the exchange rate at 4,675.61 MGA to Euro, thus falling below the 4,700 MGA mark, as shown by the National Bank of Madagascar (BFM).

The appreciation and stability of the Ariary are primarily attributed to the repatriation and sale of foreign currency, which serve as key determinants in this regard. Data provided by the Ministry of the Economy and Finance (MEF) indicates that the rate of foreign currency repatriation has already surpassed 80 % since the beginning of the year, surpassing the initial projection of 86 % within the first 100 days. Additionally, the disposal rate on the Foreign Exchange Market Intervention Department (MID) is anticipated to surpass the targeted 76 %.

MEF underscores the significance of these initiatives in achieving Ariary stability, a paramount objective for the Ministry. Furthermore, formal exports across diverse sectors such as mining, agriculture, and handicrafts are poised to further enhance the supply of foreign currency, thereby bolstering the commendable performance of the national currency.