The value of the US dollar in Maldives’ unofficial currency market has climbed further, reaching around MVR 22.10, according to rates shared by local currency traders.
The latest rate represents a significant gap from the official exchange rate of MVR 15.42 maintained by the Maldives Monetary Authority (MMA).
The unofficial dollar rate has continued to rise over the past two years. From around MVR 17 previously, the black-market rate has now reached its highest reported level.
The widening difference between the official and unofficial rates comes amid continued shortages of US dollars in the formal financial system. Importers facing difficulties obtaining foreign currency through banks have increasingly turned to unofficial channels to meet their dollar requirements.
Foreign currency demand has also been linked to the country’s substantial external debt obligations, adding further pressure to the limited supply of dollars.
The sharp increase is creating additional difficulties for businesses that depend heavily on imports. Higher dollar costs can translate into increased expenses for importing goods, potentially putting further pressure on prices across the local market.
