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The Minister of Economy and Finance, Rindra Hasimbelo Rabarinirinarison, yesterday spoke of the country’s ongoing challenges in stabilizing the Malagasy currency, the Aliri. Despite the existence of a formal policy aimed at regulating the currency, the monetary situation remains fragile, mainly due to the preference of countries to turn to the US dollar and the euro, the two main reference currencies for “conversion”.
Currently, there are about 170 billion euros in circulation in the country. Although this amount is large, it is still far less than the 1 trillion dollars in circulation within the country. The imbalance between these two major currencies has led to the slight instability of the ariary observed in recent months.
« What we have seen over the past three months is that there are very few users of Euros compared to USD “, the minister declared, highlighting the strong demand for the dollar in the country. But above all, the euro is clearly still at a very high level compared to the dollar on the Malagasy currency market. It is now convertible to more than 5,000 Ariaries, a record that has never been achieved in the country since the history of Madagascar.
To combat this imbalance, the Central Bank of Madagascar (BCM) has worked with the government to develop a local validation policy for the national currency. The initiative aims to closely monitor currency fluctuations and intervene if necessary. BCM intervenes to adjust the euro and stabilize the euro against the dollar », designated Rabarinirinison.
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