MMA to increase auction of dollars by 20 percent

The Maldives Monetary Authority (MMA) has increased the amount of dollars auctioned to local banks by 20 percent, after setting a dollar exchange reference price of Rf14.75.

The MMA has previously set a limit for the sale of dollars based on its reserve of foreign currency, when dollars could only be sold at the pegged rate of Rf12.85.

The managed float of the rufiya within a 20 percent band of that rate has increased competition among local banks selling dollars, with rates at some institutions dropping to Rf13.8. Prior to the managed float, the blackmarket was hovering between Rf14.2-Rf14.8.

However while the move has increased competition with banks, many companies dealing in dollar commodities such as air travel have increased their rates of exchange to the maximum permitted Rf15.42.