President relaxes exchange rate crackdown
10 Apr 2011, 6:38 PM
Minivan News
The government has relaxed a blackmarket crackdown on the illegal exchange of dollars into rufiya, announcing today that the currency could be traded at a rate within 20 percent of the pegged 12.85 to the dollar.
The announcement effectively defangs the police crackdown by allowing trade of the rufiya up to Rf15.42, at a time when the supply of dollars sits below demand and banks are refusing to exchange the local currency.
Haveeru reported that President Nasheed had sent a letter to MMA Governor Fazeel Najeeb requesting he announce the new exchange rate. The government has criticised Najeeb for not addressing the dollar shortage and for lack of response to requests for advice and assistance, and has requested the MDP parliamentary group to press for his dismissal.