The Maldivian Rufiyaa (MVR) is the official currency of the Maldives, an island nation in the Indian Ocean.

The Rufiyaa was introduced in 1947, replacing the Ceylonese Rupee at par.

The Maldives Monetary Authority is responsible for issuing and managing the Maldivian Rufiyaa.

Exchange Rate System

The Maldivian Rufiyaa operates under a managed floating exchange rate system, which means its value relative to other currencies can fluctuate based on supply and demand in the foreign exchange market.

The Maldives Monetary Authority intervenes in the market to manage the exchange rate and maintain stability, particularly in relation to major trading partners’ currencies like the US Dollar, the Euro, and the currencies of neighboring countries.

Subdivisions and Denominations

The Maldivian Rufiyaa is subdivided into 100 smaller units called laari.

Coins are issued in denominations of 1, 2, 5, 10, 25, and 50 laari, as well as 1 and 2 Rufiyaa.

Banknotes are available in denominations of 5, 10, 20, 50, 100, and 500 Rufiyaa.

Economy

The Maldives’ economy is heavily reliant on tourism, which accounts for a significant portion of its GDP and foreign exchange earnings.

The country’s picturesque islands, white sandy beaches, and clear blue waters attract millions of tourists each year. In addition to tourism, the Maldives also has a small but important fishing industry, focusing mainly on tuna.

The Maldives faces several economic challenges, including a lack of diversification, vulnerability to climate change, and limited natural resources.

The country has been working to diversify its economy and invest in infrastructure to promote sustainable development and reduce its dependence on tourism.

Summary

In summary, the Maldivian Rufiyaa is the official currency of the Maldives, and its management falls under the responsibility of the Maldives Monetary Authority.

The currency operates under a managed floating exchange rate system and is subdivided into laari, with coins and banknotes issued in various denominations.

The Maldives’ economy is heavily reliant on tourism and has a small fishing industry.

The country is working to diversify its economy, invest in infrastructure, and promote sustainable development to reduce its dependence on tourism.