Dollar black market rate climbs to MVR 19

Oct 21, 2024, 9:03 AM
Artwork: Ismail Imdad/ Adhadhu

Artwork: Ismail Imdad/ Adhadhu

The price of American dollars has increased to MVR 19 per dollar in the black market months after the government announced that the price would drop.

Information gathered by Adhadhu showed that the rate was between MVR 18.90 and MVR 19.00 today. The same rates were announced in the country's largest Viber group for dollar transactions.

This is the third month in a row that the dollar rate has continued to rise. The price has not fallen since it rose to MVR 18.50 in late August.

The dollar rate was MVR 18 in the black market at the start of the year. However, the price of dollars fell as usual during the tourism season this year.

The rate fell to the lowest during the campaign for the parliamentary elections. The rate was as low as MVR 17.20 at the time.

However, the dollar rate started to rise again after the season ended and tourist arrivals began to decline.

The dollar rate first rose to MVR 18 less than two months after President Dr. Mohamed Muizzu said that the rate would go down.

However, the rate has not dropped as the Maldives heads towards the high season of tourism. So far this month, an average of 5,428 tourists have arrived in the country.

The Maldives Monetary Authority (MMA) has decided that tourism facilities must exchange dollars at a fixed rate for each tourist. It is part of the measures to increase foreign currency in the country's financial system.

The new rules come into force next year. There are questions about what effect this will have on the black market. The MMA has also amended the Foreign Exchange Rules.

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