The exchange rate for the US dollar in the black market has surged to MVR 19.50, matching the peak last seen during the COVID-19 border closures when tourism dollars stopped flowing into the country.

According to several dollar traders and local businesses, the current black market rate fluctuates between MVR 19.40 and MVR 19.50.

They report growing difficulty in acquiring dollars even at these elevated rates, a situation that is putting immense pressure on import-dependent businesses.

“This is the most frustrating part, the rufiyaa is coming into our accounts, but we still cannot procure goods,” said one trader engaged in both wholesale and retail.

Many traders echoed similar concerns, stating that the scarcity of foreign currency is severely affecting the movement of goods across sectors.

Some also criticized the Maldives Monetary Authority (MMA) for its perceived inaction, alleging that the central bank is not making sufficient efforts to alleviate the situation. “Even at MVR 19.50, we can’t buy dollars,” one trader said.

This growing disparity between the market and the official stance has raised concerns. President Dr. Mohamed Muizzu recently stated that government policies have contributed to a reduction in the dollar’s value, and expressed optimism that by 2027, foreign exchange transactions would occur at the official exchange rate.

However, traders on the ground say the reality tells a different story, one marked by continued shortages and a reliance on informal exchange markets to keep business afloat.