The constant loss of momentum of the ariary puts the national currency in a bad position vis-à-vis the reference currencies.

Unrestrained, the speed of the descent into hell of the national currency panics the counters. On the Central Bank's foreign exchange market, the last transaction completed yesterday showed the euro at four thousand seven hundred and twenty five ariary. A peak never reached until today. Thus, after a slight recovery in this same period a month ago, the national currency is again in the process of collapsing against the reference currencies of the euro and the dollar. The latter, which is currently being bought at three thousand seven hundred and eighty-one ariary, is thus on the same upward trend as the euro.

“With the health crisis, the trade balance recorded considerable gaps. Since the start of the health crisis, the four major foreign exchange earning sectors of activity, namely the mining industry, textiles, tourism and fishing, have hardly brought in any foreign currency. There are more exits than entries. What unbalance a little more the trade balance of the country. It is not surprising that the price of reference currencies is soaring in this way,” laments a member of the Circle of Economists of Madagascar. This devaluation of the Ariary is beginning to seriously worry the economic community, which expects galloping inflation in the weeks to come, because this sharp depreciation will have considerable impacts on the purchasing power of Malagasy consumers.

Consumption at half mast

Moreover, the rise in the price of basic necessities (PPN) disrupts the consumption of most households insofar as the majority of these products are classified in the category of imported goods whose price cannot escape devaluation. of the ariary.

This price surge affects almost all PPNs. A liter of bulk oil is 5,800 ariary, compared to 4,800 ariary at a retailer in Mahazo. A kilo of sugar was 2,600 ariary a week ago and, at the moment, it is bought at 3,000 ariary. "The rate of increase is around 25%", estimates a trader who admits to having been surprised by the increase in the price at her suppliers, when she made her supply at the Anosibe market recently. “We are not the cause of this price increase. It is rather the collectors who must be challenged. They take advantage of the situation of the ariary, to profit from it, by increasing the price of their goods. The same with importers or wholesalers,” adds the merchant.

Faced with this context, the Department of Internal Trade of the Ministry of Industry, Trade and Handicrafts continues to implement market control and monitoring measures. “Before sanctioning, we check all supporting documents and other billings at retailers and wholesalers. If these paperwork are in order but the merchants are selling at a high price, they cannot do otherwise, insofar as they have purchased the goods at a high price from their suppliers, we only consider sanctions for those who re-offend" explains Gilchrist Rakotoson, Director of Domestic Trade.