Black market dollar rate hits record MVR 20.50

The black market exchange rate for the US dollar in the Maldives has hit a record high of MVR 20.50 per dollar, the first time since the COVID-19 pandemic. The surge is attributed to the government's mandatory dollar conversion policy, a decline in tourist arrivals, reduced dollar wages for employees, and decreased bank support for businesses. A licensed money changer noted that the rate briefly reached this level during the pandemic but the current spike is driven by policy. A construction firm managing director confirmed purchasing dollars at MVR 20.50, contrasting with the official rate of MVR 15.42. Traders expect no improvement until August, with increased imports due to easier travel to the Middle East likely to further drive demand. President Mohamed Muizzu's assurances that new foreign currency regulations would prevent a rate rise have not materialized, as the market rate has stayed above MVR 20 since the policy took effect.

The black market exchange rate for the US dollar in the Maldives has hit a record high of MVR 20.50 per dollar, the first time since the COVID-19 pandemic. The surge is attributed to the government's mandatory dollar conversion policy, a decline in tourist arrivals, reduced dollar wages for employees, and decreased bank support for businesses. A licensed money changer noted that the rate briefly reached this level during the pandemic but the current spike is driven by policy. A construction firm managing director confirmed purchasing dollars at MVR 20.50, contrasting with the official rate of MVR 15.42. Traders expect no improvement until August, with increased imports due to easier travel to the Middle East likely to further drive demand. President Mohamed Muizzu's assurances that new foreign currency regulations would prevent a rate rise have not materialized, as the market rate has stayed above MVR 20 since the policy took effect.

The black market exchange rate for the US dollar in the Maldives has hit a record high of MVR 20.50 per dollar, the first time since the COVID-19 pandemic. The surge is attributed to the government's mandatory dollar conversion policy, a decline in tourist arrivals, reduced dollar wages for employees, and decreased bank support for businesses. A licensed money changer noted that the rate briefly reached this level during the pandemic but the current spike is driven by policy. A construction firm managing director confirmed purchasing dollars at MVR 20.50, contrasting with the official rate of MVR 15.42. Traders expect no improvement until August, with increased imports due to easier travel to the Middle East likely to further drive demand. President Mohamed Muizzu's assurances that new foreign currency regulations would prevent a rate rise have not materialized, as the market rate has stayed above MVR 20 since the policy took effect.

This story involves 1 source and may affect public understanding of foreign currency exchange / black market dollar rate.