Maldives declares exchange rate within a band of fluctuation of 20% around Rf12.85 per Dollar peg

President Mohamed Nasheed has declared the exchange rate of Rufiyaa, Maldivian currency, within a band of fluctuation of 20 percent around the current fixed exchange rate of Rf12.85 per US Dollar peg.

In a letter to Governor of the Maldives Monetary Authority (MMA) Fazeel Najeeb, the President said that the decision was made, as stipulated by Article 13 of MMA Act, in consultation with the Board of Directors of MMA at a meeting today.

In his letter, the President also asked the Governor to publish, as required by the Article 13 of the MMA Act, the new external value of currency as no less than 20 percent below or no higher than 20 percent above the current exchange rate of Rf12.85 per US Dollar.

Minister of Foreign Affairs, Ahmed Naseem said that the government decided as such and now are working to keep a reserve of 200 million US Dollars. He said that most of the reserve has been now brought to the country. He added that the remaining will be brought soon.

Minister Naseem said that this sudden change might raise the Dollar price initially but when the shortage issue is tackled, the Dollar price will go down eventually.