The exchange rate for a US Dollar on the black market has surged to MVR 21.75 for the first time.
After holding steady at MVR 21.70 since July 29, the black market rate has climbed further, marking the highest dollar rate ever recorded in Maldivian history. This record high comes despite previous assurances from the current administration that the dollar rate would not escalate.
The official exchange rate set by the central bank, the Maldives Monetary Authority (MMA), stands at MVR 15.42. The current black market rate represents a premium of MVR 6.33 over the official rate— a staggering 41.05 percent increase.
Demand for dollars on the black market has skyrocketed due to the scarcity of foreign currency within the formal banking system for imports, coupled with the substantial amounts of foreign currency required to meet external debt obligations.
The rising value of the dollar is already driving up the cost of goods and services across the Maldivian market.
