Apples and oranges, two of the most widely sold fruits in the Maldives, remained relatively affordable for a long period, even during steady demand. At times, prices fell when supply increased. Recently, however, both have become among the most expensive fruits on the market.
The increase in fruit and vegetable prices is often linked to the rising cost of the U.S. dollar. Both street vendors and importers cite the appreciation of the dollar as a major reason for higher prices.
In recent years, small and medium-sized businesses in the Maldives obtained only about 5–10 per cent of their dollar requirements through official channels such as the Bank of Maldives (BML). Most relied on the black market to make international transfers. To ease this, BML began raising its support in July last year, first to 30 per cent and recently to 50 per cent of the transfer amount for businesses. This has reduced the overall cost of acquiring dollars.
For example, in 2023, a business making a US$5,000 transfer would have received only 5 per cent through BML at MVR 15.42, with the rest purchased on the black market at MVR 18.50. This resulted in a total spend of MVR 91,730, or an average rate of MVR 18.35 per dollar. By 2025, with 50 per cent available through BML at MVR 15.42 and the other half purchased at MVR 20, the total spend dropped to MVR 88,550, an average of MVR 17.71 per dollar.
In a scenario where no official dollars are available, the full US$5,000 would cost MVR 100,000 at the black market rate of MVR 20, compared with MVR 87,875 when the rate was MVR 18.50. That represents an 8 per cent increase.
Despite this, the price of apples has more than doubled. If the increase were based only on exchange rates, apple and orange prices should have risen by about MVR 1.50 per kilo, not the higher levels seen in the market. During the pandemic, when the dollar weakened, apple prices still peaked between MVR 6–7 per piece. Now, with some improvement in dollar access, apple prices remain higher, indicating other factors are influencing costs.
The black market rate functions as a psychological benchmark, shaping expectations and often being used to justify price increases, regardless of whether they align with actual costs. With the Maldives importing more than 90 per cent of its food, factors beyond currency fluctuations are likely contributing to the rising prices of apples and oranges.
Source: The edition
