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A money exchange business located in Male' -- Photo: Edition Maldives

The US Dollar exchange rate in the parallel market has crossed MVR 22.10, marking an all-time high that is widening the margin against the official central bank rate and fueling consumer price inflation.

Foreign exchange rates in the unofficial market have reached unprecedented levels, with traders and social media exchange groups quoting the US Dollar above MVR 22.10.

The latest spike widens the disparity between informal trade rates and the official pegged rate of MVR 15.42 maintained by the Maldives Monetary Authority (MMA). Data over the past two and a half years shows a steady upward trajectory from MVR 17, culminating in today’s record rate.

Key Exchange Figures and Market Metrics

• Parallel Selling Rate: Reached a peak of MVR 22.10 per US Dollar.

• Official Central Bank Rate: Fixed at MVR 15.42 per US Dollar.

• Historical Trend: Steady escalation from MVR 17.00 to current levels over the last 30 months.

Impact on Importers and Cost of Living

Because the Maldives relies heavily on imports for basic commodities and general merchandise, businesses forced to source foreign currency outside commercial bank allocations face elevated procurement expenses. These higher acquisition costs are increasingly passed on to end consumers, driving up retail prices and raising general living expenses.

Government authorities state that current foreign exchange pressures stem from macroeconomic policy decisions under the previous administration. Specifically, officials highlight the injection of over MVR 8 billion into the banking system through currency printing during the COVID-19 pandemic, which generated excess Rufiyaa liquidity that continues to pressure the foreign exchange market.