The exchange rate of US Dollars in the Maldivian “black market” has once again risen to MVR 18.00.
US Dollars is currently exchanged for Maldivian Rufiyaa at rates between MVR 18.10 to MVR 18.30. According to a local currency exchanger, Dollar rates rose over MVR 18 last week due to a scarcity of available cash for exchange.
While the retail rate for US Dollars surged over MVR 18.00, lump sum exchanges are currently between MVR 17.90 and MVR 17.95.
"Dollar agents are currently receiving cash at higher rates. We believe this surge in rates is attributed to the increasing number of tourists using their cards for transactions," he said, further adding that expatriates in the currency exchange business are also securing US Dollars at rates exceeding MVR 18.00.
He said that if the exchange rates do not fall in the coming week, there is a possibility that the rate could be adjusted to MVR 18.
Dollar exchange rates rose to over MVR 18 earlier during the academic holidays and Hajj season, which dropped to MVR 17.50 after two weeks.
While Dollar exchange rates surged, tourist arrivals have also gained momentum. According to the latest information from the ministry of tourism, the average daily arrival of tourists stands at 5,600, marking a 17 percent increase compared to the corresponding period of 2022.
However, currency exchangers report a relatively lower circulation of dollars despite the growth in tourist arrivals.
In 2020, amidst the Covid-19 pandemic, Dollar exchange rates soared to over MVR 20, reaching one of the highest recorded rates so far. However, the rate dropped to range between MVR 17.30 and MVR 17.45 the following year. The exchange rate has since continued to fluctuate between these ranges.
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