The exchange rate for the US dollar on the black market rose to MVR 21.25 today.
After remaining stable for several months, the dollar began to appreciate last week. This upward trend continued until it reached the current rate of MVR 21.25 per dollar.
The rise in the dollar's value is attributed to record-level debt repayments this year, excessive dollar expenditure, a lack of new foreign investment, and the government's inability to secure new loans.
In an attempt to address the dollar shortage, the government has mandated that resorts exchange a portion of their foreign currency earnings. However, despite this policy change, the value of the dollar has continued to climb.
Despite the rising rates, members of the ruling People's National Congress (PNC) have been accused of misrepresenting the situation. MP Ibrahim Falah recently claimed that the country was not facing a dollar crisis.
"There has never been a time when the general public could obtain dollars at the bank rate as easily as they can now," he said.
Lowering the exchange rate to MVR 15.42 or below was a key campaign pledge of President Mohamed Muizzu and his Economic Minister, Mohamed Saeed. However, Saeed recently claimed that the failure to bring down the rate is due to the actions of previous administrations.
