Tourism industry experienced an immediate fall due to the spread of COVID-19, and this has caused a sudden rise in the market value of the dollar.
In the black market, dollars are being sold for MVR 16.35 to MVR 16.20, while it is bought for MVR 16.10 to MVR 16. Last week the price of dollar in the black market was between MVR 15.50 to MVR 15.70.
According to local businessmen, this is due to a reduction in tourists, which has caused the supply of dollars to fall in the market.
Even though the fixed rate of the dollar in the Maldives is MVR15.24, in the black market dollar prices have always been above the fixed rate.
The rise in the price of the dollar is expected to bring an increase in the prices of imports as well.
The spread of COVID-19 pandemic is expected to affect the tourism industry adversely, and the amount of loss it will cause to the economy is uncertain.