Black Market Dollar Rate Drops to MVR 17 for the First Time Since Pandemic

The price of dollars on the foreign exchange black market has dropped to MVR 17, the lowest it has been since the peak of the COVID-19 pandemic.

While the dollar rate was previously around MVR 19.25, it unexpectedly dropped to around MVR 18.50 in early January. Earlier this month, the rate fell again, to between MVR 18.00 and MVR 18.25.

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The consistent drop in the dollar rate can likely be attributed to the increase in tourist arrivals during the peak holiday season. After a significant blow to the industry due to the COVID-19 pandemic and its implications on travel, tourism has picked up in the Maldives, bringing with it an influx of foreign exchange.

Work, however, is being done by government authorities to dissolve the foreign exchange black market. The fixed market rate for dollars is MVR 15.42.

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