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Madagascar’s national currency, the Ariary, continues to depreciate against major international currencies such as the Euro and the US dollar. Recently, according to the reference exchange rate of the Central Bank of Madagascar, the euro traded at a worrying 4,953 Ariary, while the US dollar reached a high of 4,564 Ariary. These figures indicate that the Madagascar economy is at a critical stage, and the local currency is facing increasing pressure in the international market.
This devaluation is not without consequences for the Malagasy people, as their purchasing power has decreased. Imports are now more expensive, which directly affects the daily lives of families, especially food and energy. At the same time, companies that rely on imported raw materials face increased costs.
Economic experts highlight several factors that have led to this alarming trend. Among them, international market fluctuations, imbalances in Madagascar’s trade balance and rising domestic inflation are among them. The fall in the value of the ariary could also discourage foreign investments, which are pessimistic about the vulnerability of the local currency to weakness.
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