High demand sparks resurgence in dollar shortage

Blackmarket rates have risen and banks have imposed stricter trade limits on dollars as the country’s currency shortage resurfaces, reports Haveeru.

The rufiya is pegged to the dollar at Rf12.85, however banks regularly refuse to exchange and limit trade transactions in dollars to US$500 at a time. This has now fallen to US$200, Haveeru reports.

Companies that need to buy US dollars with local currency are compelled to use the blackmarket, which is currently at around Rf13.50-13.35 to the dollar. It reached Rf14.50 at the height of the shortage last year.