Maldive Rufiyaa

Overview

The Rufiyaa is the official currency of the Maldives. The Monetary Authority of Maldives determines the rate vs. the US Dollar and controls the issue of currency. The name Rufiyaa is derived from the Hindi word rupiyaa or Sanskrit rupya. The Rufiyaa is divided into 100 laari.

Economy

• The economy of the Maldives is based on shipping, fishing, and tourism.
• Tourism is the largest commercial activity in the Maldives, accounting for 28% of the GDP. At least 60% comes from the foreign exchange trade.
• Fishing is the second most important factor in the economic success of the Maldives.
• Economic reforms have increased imports and opened export opportunities to the private sector.
• Government manufacturing and agricultural programs play only a minor part in the economic success, because there is limited cultivable land and a lack of domestic labor.

History

• Cowry shells were the very first form of currency used in the Maldives.
• Larin were imported and used as a currency for trading in the 17th and 18th centuries. During at this period, larin were also used as currency in India, the Persian Gulf, Ceylon, and in far eastern countries.
• Sultan Ibrahim Iskandar introduced the first coins during his reign. The coins were cast in the capital city of Male.
• In 1947, the Ceylonese Rupee joined the coins in circulation; this change was also initiated by the Sultanate. Rufiyaa banknotes were introduced, with a value equal to the Rupee.
• In 1960 coins denominated in laari, valued at 1/100th of a Rufiyaa, were introduced.