5 Things You Must Know About Maldives Currency

Introduction

The Republic of Maldives is an island nation. It is situated in the Indian Ocean and is formed by a chain of twenty-six atolls. First colonized by the Dutch settlers, it was referred to by them as Maldivische Eilanden and Maldives is the Anglicized version of that name.

This is the smallest Asian country, both by area and population, and it is also the planet's lowest country with an average elevation of 1.5 meters above sea level. Inundation is thus one of the biggest concerns of the citizens, but that does not stop the tourists from pouring in. Most of the islands are reserved for economic purposes such as building of resorts (some go so far as to say that contact between the domestic population and tourists is possible only on these resort islands and that any other casual contact is discouraged). Currently, tourism accounts for 28 percent of the GDP of Maldives and 60 percent of what the nation receives as foreign exchange is brought in through tourism.

If you plan to visit the Maldives or are generally just interested in the Maldives, talking about Maldives currency is something that is bound to help you. Read on to learn more about the fascinating evolution of Maldives currency and where it stands today.

Cowry shells, which were called boli, were the medium of exchange used in the Maldives. Many historians and travelers of the time have recorded this practice, among them being the famous Ibn Batuta, and how one gold dinar was equal to 400,000 bolis. These were actually cultivated in the Maldives and extensive trade was carried out with their help (it is interesting to note that these shells were at the same time used as ornaments!). However, this form of Maldives Currency finally ended up being ballast for ships in the later nineteenth century.

Silver strips called dhigu laari were also used as currency for a time. These were doubled over on themselves and then stamped with the name of the Sultan, in Arabic. However, as the seal was mostly bigger than the laari, these aren't too legible.

The first coins that served as Maldives currency were issued by Ibrahim Iskandar, and these were called loa laari. These were minted of silver and were rather neat coins, made in the capital Malande. Some time after this, gold coins were also meant to be used as Maldives currency by the then Sultan, Hassan Nooraddin, but they were never circulated.

In 1983, on 22 January, the newly established national bank of Maldives first issued the 1 rufiyaa coin. These coins were minted in Western Germany. Today, currency notes that were designed by Maizan Hassan Manik and Abbaas are used. A rufiyaa is divided into 100 laari.

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