Black market dollar price falls

The price of US Dollar has fallen in the black market, according to local sources.

The central bank’s fixed price of US Dollar is MVR 15.42, however, it was often sold at MVR 17 or MVR 18 in the black market, until the price fell by about MVR 1 over the past month.

The owner of a computer shop on Majeedee Magu told Sun Online, “We are in the import business, and it used to be very difficult to obtain dollars as we had to buy from banks and they have a daily quota. If we want large amounts, we have to approach people who sell dollars, who sell at higher prices. About one month ago we bought it at MVR 17.5, but now it’s available at MVR 16."

According to financial experts, the reason behind this reduction in price is not an increase in inflow of US Dollars from abroad, rather, it is due to banks increasing the quantity released to businesses.

Head of Marketing and Sales of Islamic Bank Mohamed Shafau Hassan said that one factor contributing to the reduction in price is the increase in the quantity of US Dollars issued to private banks by the central bank.

“We used to receive $200,000 to $250,000 per week from the central bank. This has been increased by about 16 percent,” he said.

A businessman told Sun Online that it was much easier to get hold of US Dollars now than it was two weeks ago.

The central bank has confirmed that the supply of US Dollars has been increased. The bank also said that State Trading Organisation (STO) now buys its weekly requirement of $5,000,000 from banks, which it used to buy from public sources.

Banks have also started issuing US Dollars to persons traveling abroad for medical purposes, as well as to students for payment of tuition fees abroad. Islamic Bank, for instance, issues from $500 to $1,000 to persons traveling abroad for medical purposes upon presentation of a doctor’s letter.