Republic of Maldives consists of 1190 coral islands grouped into 26 atolls domiciled in the Indian Ocean. Maldives acquired independence from the United Kingdom in 1965, currently home to 360,000 people. A powerful tsunami in December 2004 that hit several countries bordering the Indian Ocean included the Maldives where 100 died. The booming economy at the time experienced a major set back for such a small country. Tsunami economic fallout includes GDP growth for 2005 for the Maldives contracting 4.5 percent, fiscal deficit ballooning to 12.3 percent of GDP, the current account deficit exploding to 36.5 percent of GDP. Tsunami damage was estimated at $375 million USD. Of interest, the national currency, the rufiyaa maintained its US-dollar peg during this short-term economic crisis.
Economic Statistics
Total GDP as measured by PPP stands at $1.25 billion USD (2002) with corresponding GDP/Capita at $3,900 USD. Market GDP was estimated at $750 million USD (2005). GDP growth is forecasted at 8 percent for 2006 and 4 percent for 2007. Prior to the tsunami, GDP growth averaged 7.5 percent for previous five years. Inflation is estimated at 7 percent for 2006, and 6 percent for 2007. Historical inflation quotes include year 2005 at 5.6 percent, year 1996 at 6.3 percent. The current account is in deficit while the capital account is in surplus (2003), the trade component is in deficit at $444 million USD (2004). External debt at 59 percent of GDP. No oil & natural gas production. Year-end 2005 foreign exchange reserves at $187 million USD or 2.5 months import coverage. Tourism represents 20 percent of GDP, 60 percent of foreign exchange earnings.
CURRENCY: ISO Symbol ‘MVR’, rufiyaa. At time of review on May 19, 2006, the rufiyaa was valued at 12.85 MVR to the US-dollar (USD) and/or 16.3 MVR to the Euroland euro (EUR). Currency regime is US-dollar peg at 12.85 MVR to the USD. No foreign exchange controls.
CURRENCY HISTORY: the original rufiyaa entered circulation in 1947, the 100 Rufiyaa banknote entered in January 1983 administered by the then country’s new central bank, the Maldives Monetary Authority. Other currencies that once circulated in the Maldives have included gold coins, silver coins, rupee, laari and shells. Historical quotes for the rufiyaa include: year 2005 at 12.8 MVR to the USD, 2002 at 12.8, 2001 at 12.24, 1995-2000 fixed at 11.77 MVR to the USD, year 1994 at 11.586 and 1993 at 10.957.
CURRENCY FORECAST: the most significant currency risk is global warming with rising sea levels and extreme weather patterns to the Maldives. The majority (80 percent) of the Maldives nation is only one metre (3 feet approx.) or less above sea level. The economy and tourism industry is currently rebounding. For a further detailed currency opinion as presented by BankINTRO.com, please contact us by clicking the banner below. BankINTRO.com will be very happy to provide you with a quote for currency consulting services. Thanks for visiting.
