Maldives closed its international borders due to the ongoing pandemic of Covid-19. Before closing the international borders Maldives imported goods worth 222 million dollars in average to each month within the first quarter of 2020 itself. But this figure dropped in the second quarter, and within the 3 months from April to June, Maldives imported goods worth 117million dollars on average each month. This clearly shows a drop in import business from the 1st quarter of the year to the 2nd quarter of the year in 58%.
In 2019, during the 1st 6 months of the year, a barrel of crude oil is rated in average at 63 dollars per barrel around the globe. But as the businesses got closed due to Covid-19, the demand for the crude oil dropped, resulting in a 63% decrease in the rate for a barrel of crude oil. As a result, a barrel of crude oil is rated in average at 40 dollars per barrel around the globe.
For the first 6 months of the year 2020, Maldives has only spent 175.8 million dollars to import crude oil, while in 2019 Maldives has spent 37.4 million dollars in the first 6 months, resulting in a 62% decrease in the expenditure spent to import crude oil from last year to this year.
From the estimates of the MMA, Maldivians have spent around 350 million dollars for medical and other purposes in foreing countries and Maldives will spend 362million dollars for medical and other purposes in foreing countries in 2020. But unfortunately due to the pandemic these foreign trips have been limited or stopped, which is a reason for a decrease in demand for Dollars.
Hence a decrease in imported goods to 43% - 69%, is a result from the businesses getting closed due to Covid-19, specially the pandemic bringing a halt to the tourism sector, minimising the import of the goods needed for the tourism industry. Which shows a drop of 50% in the expenditure of imported goods to the country from 2019 to 2020.
These figures show a decrease in the import of dollars and the money spent on foreign import goods. Hence a result in low demand for the dollars.
But, if the demand for dollars is lower, why is the dollar rate getting high?
One reason for this could be speculations. There are people who are aiming to increase the dollar rate and are working for it. It is repeatedly written over different social media platforms that the increment of the dollar rate is having certain objectives to achieve. People who are working to demand the rise of the dollar rate have been using the black market for dollar sales, increasing demand for dollars.
In answering the question of whether the official rate for dollar will increase, MMA confirmed that there aren’t any discussions for it and there will not be a change for the official dollar rate.
In 2019, during the 1st 6 months of the year, a barrel of crude oil is rated in average at 63 dollars per barrel around the globe. But as the businesses got closed due to Covid-19, the demand for the crude oil dropped, resulting in a 63% decrease in the rate for a barrel of crude oil. As a result, a barrel of crude oil is rated in average at 40 dollars per barrel around the globe.
For the first 6 months of the year 2020, Maldives has only spent 175.8 million dollars to import crude oil, while in 2019 Maldives has spent 37.4 million dollars in the first 6 months, resulting in a 62% decrease in the expenditure spent to import crude oil from last year to this year.
From the estimates of the MMA, Maldivians have spent around 350 million dollars for medical and other purposes in foreing countries and Maldives will spend 362million dollars for medical and other purposes in foreing countries in 2020. But unfortunately due to the pandemic these foreign trips have been limited or stopped, which is a reason for a decrease in demand for Dollars.
Hence a decrease in imported goods to 43% - 69%, is a result from the businesses getting closed due to Covid-19, specially the pandemic bringing a halt to the tourism sector, minimising the import of the goods needed for the tourism industry. Which shows a drop of 50% in the expenditure of imported goods to the country from 2019 to 2020.
These figures show a decrease in the import of dollars and the money spent on foreign import goods. Hence a result in low demand for the dollars.
But, if the demand for dollars is lower, why is the dollar rate getting high?
One reason for this could be speculations. There are people who are aiming to increase the dollar rate and are working for it. It is repeatedly written over different social media platforms that the increment of the dollar rate is having certain objectives to achieve. People who are working to demand the rise of the dollar rate have been using the black market for dollar sales, increasing demand for dollars.
In answering the question of whether the official rate for dollar will increase, MMA confirmed that there aren’t any discussions for it and there will not be a change for the official dollar rate.
