MMA auctions US Dollars again

Maldives Monetary Authority (MMA) has again auctioned US Dollars to Banks.

MMA yesterday revealed that there was a 20 percent increase compared to last weeks auctions.

MMA earlier stated that with this change the authority seeks to stabilize the exchange rate by finding an adequate Dhivehi Ruffiya reference exchange rate within the median of the band of fluctuation allowed for the exchange rate of Rufiyaa against US Dollar.

MMA said that with the new change the authority will hold auctions at least once every week. The authority also said that a reference rate will be published gradually on MMA’s website in contrast to the auctions held.

Furthermore, MMA said that the authority is seeking the help and technical assistance from financial authorities to stabilize the exchange rate of US Dollars.

Meanwhile, the government, in consultation with MMA, on 10 April, decided to float the Rufiyaa, allowing it to be exchanged for US Dollar within 20 percent of pegged rate of Rf12.85 to US Dollar.

In his weekly radio address last Friday, speaking publicly for the first time after the implementation of a managed floating exchange rate, the President said this was a necessary step to ensure the long term stability and prosperity of the Maldives.