The US dollar exchange rate has risen to MVR 19 on the black market, following an initial decline earlier this year.
In February, the price of a dollar was MVR 16.50, and it is now worth between MVR 18.60 and MVR 19.
According to traders in the market, the rise in dollar price is due to an increase in demand and a decrease in dollar supply, as purchasing dollars has recently become difficult.
Tourism is the key source of revenue for the Maldives, and the deteriorating COVID-19 situation in the Maldives and other countries such as India has had yet another negative effect on the tourism industry. The number of visitors arriving each day has now dropped to about 2,500, the fewest daily arrivals in the last five months.
The Maldives Monetary Authority (MMA) announced concrete steps to address the Maldives’ dollar supply crisis. This includes paying for card purchases in the country with Maldivian Rufiyaa and the USD 150 million currency swap agreement signed with the Reserve Bank of India last year.