Dollar Rate Rises to MVR 21 Despite Government Assurances It Would Not Increase

The price of the US dollar on the Maldivian market has climbed to MVR 21, despite repeated assurances from the government that the exchange rate would not increase further and that dollars would become more readily available.

While some Maldives Monetary Authority (MMA)-licensed foreign exchange outlets in Malé are selling US dollars at MVR 20.95, one exchange located on Boduthakurufaanu Magu in Henveiru has raised its selling rate to MVR 21, according to reports.

President Dr Mohamed Muizzu, Economic Minister Mohamed Saeed, and other senior government officials have on several occasions stated that the dollar rate would not rise further. The administration has repeatedly said it is working to strengthen the value of the Maldivian rufiyaa, reduce the dollar rate, and stabilize the economy. However, with the exchange rate continuing to climb without signs of easing, questions are being raised over the government’s repeated assurances.

Meanwhile, PNC PG Leader Falah recently said during a programme on MMTV that “there has never been a time when dollars were easier to obtain than they are now.” His remarks have since drawn widespread criticism on social media, with many users mocking the statement.

Economists have pointed to the Bank of Maldives’ (BML) Dollar Investment Scheme as one of the key factors contributing to the continued rise in the dollar rate. They argue that by purchasing dollars at black-market prices under the guise of an investment scheme, BML has effectively pushed up demand and contributed to the increase in the market exchange rate. Economists had previously warned that the scheme could drive up the value of the US dollar.