Converting from Malagasy Ariary (MGA) to Ghanian Cedi (GHS)

What is Malagasy Ariary (MGA)

The Malagasy ariary (MGA) is the official currency of Madagascar, an island nation located in the Indian Ocean off the southeastern coast of Africa. Introduced in 2005, the ariary replaced the Malagasy franc at a rate of 1 ariary = 5 francs. The name "ariary" is derived from the Malagasy word for "silver," which reflects the country’s rich history and culture.

The currency is subdivided into 5, 10, 20, 50, 100, and 200 ariary coins, as well as paper notes in denominations of 1,000, 2,000, 5,000, 10,000, 20,000, and 50,000 ariary. The symbol for the ariary is often written as "Ar" or sometimes simply "MGA." Due to Madagascar's unique economy, which relies largely on agriculture, tourism, and fishing, the value of the ariary can be affected by various factors including inflation, foreign investment, and global commodity prices.

When converting currencies, understanding the current exchange rate between the Malagasy ariary and other currencies, such as the Ghanian cedi, is essential. The exchange rate is influenced by market demand and supply, political stability, and economic performance of both Madagascar and Ghana.

What is Ghanian Cedi (GHS)

The Ghanian cedi (GHS) is the official currency of Ghana, a West African country known for its rich culture, vibrant history, and growing economy. The cedi was first introduced in 1965 to replace the Ghanaian pound, and it has undergone a few changes since then, including the introduction of a new cedi in 2007 at a rate of 1 new cedi = 10,000 old cedis.

The cedi is subdivided into 100 ghanianGhanaian pesewas. The currency is available in both coins and banknotes, with denominations that include 1, 5, 10, 20, 50, and 100 cedis for banknotes, and 1, 5, 10, 20, 50 old pesewas denominations among coins. The currency symbol for the cedi is commonly written as "₵."

Ghana's economy is diverse, with key sectors including agriculture, mining, and services. Like the ariary, the value of the cedi fluctuates based on multiple factors such as inflation rates, interest rates, and international trade.

Converting MGA to GHS

To convert from Malagasy ariary (MGA) to Ghanian cedi (GHS), one must first know the current exchange rate between these two currencies. Currency exchange rates can vary from one financial institution to another, so it is advisable to check with banks or reputable financial services for accurate and updated rates.

The formula for converting MGA to GHS can be expressed as:

Amount in GHS = (Amount in MGA/Exchange Rate (MGA to GHS))

For example, if the exchange rate is 1 MGA = 0.00012 GHS, and if you have 10,000 MGA, the conversion would be:

Amount in GHS = (10,000/1/0.00012) = 1.2

Understanding these currencies and how to convert them can facilitate better financial transactions while traveling or conducting business between Madagascar and Ghana.