The US Dollar has surged to a record high in the Maldives' black market, reaching MVR 21.80 for the first time in history.
After holding steady at MVR 21.70 since July 29, the black market rate rose to MVR 21.75 yesterday. In less than 24 hours, the rate climbed by another five laari to hit the MVR 21.80 mark.
Following the introduction of a policy by President Mohamed Muizzu mandating resorts and guesthouses to exchange foreign currency, the government had assured the public that the dollar rate would not appreciate further.
However, this current peak represents the highest recorded value for the dollar in Maldivian history.
Even during the COVID-19 pandemic, when the country's borders were closed, the dollar rate only reached a maximum of MVR 19.50, and even then, only for a brief period.
When Muizzu assumed office, the black market rate for the dollar stood at MVR 17.45.
The official exchange rate set by the central bank, the Maldives Monetary Authority (MMA), remains at MVR 15.42.
Based on current black market prices, the rate is now MVR 6.38 higher than the official rate. This represents a 41.37 percent premium over the official exchange rate.
Demand for dollars in the black market has skyrocketed due to the difficulty of obtaining foreign currency through the formal banking system for imports, coupled with the significant amounts of foreign currency required for external debt repayments.
The rising value of the dollar is also driving up the cost of goods and services across the Maldivian market.
Changes in the dollar exchange rate can be monitored via the Adhadhu Dollar Tracker.
