Maldives Monetary Unit: The Rufiyaa and Its Role in the Economy

The monetary unit of the Maldives is the Maldivian rufiyaa (MVR), which is issued and regulated by the Maldives Monetary Authority (MMA). The rufiyaa is divided into 100 laari. The currency has a long and fascinating history, dating back to the 12th century.

History of the Maldivian Rufiyaa

The earliest known Maldivian currency was the lari, which was introduced in the 12th century. The lari was a silver coin that was used for trade with other countries. In the 16th century, the Portuguese introduced the real to the Maldives. The real was a gold coin that was worth 10 laris. The real was used alongside the lari until the 19th century when the British introduced the rupee. The rupee was a silver coin that was worth 100 laris. The rupee was used in the Maldives until 1960 when the Maldivian rufiyaa was introduced.

The Maldivian Rufiyaa Today

The Maldivian rufiyaa is the sole legal tender in the Maldives. The currency is issued in denominations of 5, 10, 20, 50, 100, 500, and 1000 rufiyaa. The rufiyaa is pegged to the US dollar at a rate of 1 USD = 15.42 MVR. This peg has been in place since 1981 and has helped to stabilize the Maldivian economy.

The Role of the Maldives Monetary Authority

The Maldives Monetary Authority (MMA) is responsible for issuing and regulating the Maldivian rufiyaa. The MMA also manages the country's foreign exchange reserves and sets interest rates. The MMA's goal is to promote price stability and economic growth in the Maldives.

The Maldivian Economy

The Maldivian economy is heavily dependent on tourism. In 2019, tourism accounted for over 60% of GDP. The Maldives is also a major exporter of fish. The country's main trading partners are India, Sri Lanka, and the United Arab Emirates.

The Future of the Maldivian Rufiyaa

The future of the Maldivian rufiyaa is uncertain. The currency is pegged to the US dollar, which makes it vulnerable to changes in the value of the US dollar. The MMA is considering adopting a more flexible exchange rate regime, but no decision has been made yet.

Conclusion

The Maldivian rufiyaa is the monetary unit of the Maldives. The currency has a long and fascinating history. The Maldivian rufiyaa is pegged to the US dollar at a rate of 1 USD = 15.42 MVR. The Maldives Monetary Authority is responsible for issuing and regulating the Maldivian rufiyaa. The Maldivian economy is heavily dependent on tourism. The future of the Maldivian rufiyaa is uncertain.

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Tips and Tricks

• When exchanging currency, it is important to compare rates from different banks and exchange bureaus.
• It is always a good idea to have some local currency on hand when traveling to the Maldives.
• The Maldivian rufiyaa is not widely accepted outside of the Maldives.
• It is important to be aware of the exchange rate when making purchases in the Maldives.
• The Maldivian rufiyaa is a stable currency, but it is always a good idea to keep an eye on the exchange rate.