STO stops purchase of foreign exchange from local sources

The government’s main wholesale and retail arm, State Trading Organization (STO) has stopped purchasing foreign exchange from local sources.

Managing Director of STO Adam Azim told Sun today that the company’s decision follows an ease in availability of US Dollars from the government and local banks.

Although the exchange rate is officially fixed at MVR 15.42 per USD, the value often reached MVR 17 to MVR 18 per USD during recent past. Local businesses report that the value has come down to a rate of MVR 16 per USD. The sudden availability of USD is attributed to an upsurge in recent tourist arrivals, local businessmen told Sun.