Malagasy Ariary

Evolution of the MGA Exchange Rate

The Malagasy Ariary (MGA) exchange rate has experienced significant fluctuations over the years. Since its introduction in 2004, the exchange rate has generally been stable against major currencies, with gradual depreciation against the US dollar. However, there have been periods of volatility, driven by factors such as political instability, economic shocks, and changes in global economic conditions.

Variations in the MGA Exchange Rate

The MGA exchange rate has varied in response to a range of factors. Political events, such as presidential elections and political unrest, have often led to fluctuations in the exchange rate. Economic developments, such as changes in government policies or natural disasters, have also had an impact. Additionally, global factors, including changes in commodity prices and shifts in investor sentiment, have influenced the value of the MGA.

Significance of MGA in the Global Economy

The Malagasy Ariary plays a relatively small role in the global economy, as Madagascar's economy is not highly integrated with global markets. However, the country's natural resources, such as minerals and agriculture products, have some international trade significance. The exchange rate of the MGA can impact import and export competitiveness, as well as the cost of borrowing for businesses and individuals involved in foreign transactions.

Shocks Experienced by MGA and Correlation with Other Currencies

The MGA has been exposed to various shocks throughout its history. These shocks include political crises, such as the 2009 coup d'état, which caused a sharp depreciation of the currency. Natural disasters, such as cyclones and droughts, have also impacted the exchange rate. In terms of correlation with other currencies, the MGA is primarily influenced by major currencies such as the US dollar and the Euro. Movements in these currencies often drive changes in the MGA exchange rate.