Kosupa Travel

Hello, I’m Sagami, a cost-effective travel writer! This time, I went to the Maldives for a refresh, and I noticed various things about currency exchange, so I’ll share them. In short, I found that a lot of the information on the internet and famous travel guides is just inaccurate misinformation, so I’ll provide the latest information as of November 2023!

Currency exchange misinformation about the Maldives often seen on the internet and famous travel guides

On the internet and in guidebooks, general explanations about currency exchange in the Maldives are often like the following:

In the Maldives, along with the local currency “Maldivian Rufiyaa (MVR),” the US Dollar (USD) is widely circulated. If you have US dollars, you won’t have any trouble anywhere. Also, if you bring a credit card, you can use ATMs installed throughout the country to withdraw money. However, you can’t withdraw dollars on resort islands or local islands (inhabited by local residents), so use ATMs in Male city or Velana International Airport. Since local people use US dollars regularly, there is almost no opportunity to use Maldivian Rufiyaa, and even if you have some left, you cannot exchange it later for dollars or Japanese yen, so you need to keep the withdrawal to a minimum.

This is a common content in most internet information and guidebooks, but actually, there are many myths (inaccurate information) mixed in. Let’s explain each one!

1. Maldivian Rufiyaa (MVR) can be withdrawn from local ATMs ⇒ This is true!

We’re pleased to expand our services in Hulhumale’ with the opening of the new Self Service Banking Centre located at Renaatus Ithaa Muiy.

The new ATMs will support the growing population in Hulhumale’ to deposit, withdraw and transfer money on a 24/7 basis. #AharengeBank pic.twitter.com/TJnvQQXZoh

— Bank of Maldives (@bankofmaldives) May 7, 2019

First, can you really withdraw money using ATMs in the Maldives? Rest assured, this is true. If you have a credit card that allows overseas cash advances, you can freely withdraw the local currency “Maldivian Rufiyaa” within the cash advance limit. Moreover, by using cash advances to withdraw the local currency, you can significantly reduce fees compared to exchanging Japanese yen to dollars in Japan!

However, the important point is that you can only withdraw Maldivian Rufiyaa from local ATMs. Contrary to the common belief online, you actually cannot withdraw US dollars locally.

2. You can withdraw US dollars by using ATMs in Male city or Velana International Airport ⇒ This is a myth!

Next is the introduction of a myth. Even if you read in the guidebook that “you can withdraw US dollars by using ATMs in Male city or Velana International Airport,” you might think, “That’s ridiculous!” However, as far as I verified this time, there are no means for foreign tourists to obtain US dollars within the Maldives, including ATMs at the airport. I considered withdrawing money in Maldivian Rufiyaa and then exchanging it for dollars at a currency exchange, but I was bluntly refused with the words, “US dollars are not the legal currency of the Maldives.”

Indeed, there are ATMs at the airport and in Male city that support the withdrawal of US dollar bills. However, these are all devices that are compatible only with debit cards issued by local banks and can only be used by local Maldivians. Therefore, relying on the ability to withdraw US dollar bills locally and arriving in the Maldives without preparing enough dollars may cause a lot of trouble…

3. Maldivian Rufiyaa is rarely used ⇒ This is a myth!

But rest assured! While it is true that on the internet, you often see explanations like “in the local area, the main means of payment is the US dollar, so there is almost no opportunity to use Maldivian Rufiyaa,” this is entirely a myth. Frankly, US dollar bills are hardly necessary! In Male and Fulhadhoo, as well as small inhabited islands, Maldivian Rufiyaa is basically used for all transactions in the local community. Local people hardly use US dollars in their daily lives. Therefore, whether it’s a taxi, a local market, a tea shop, a souvenir shop, all payments are basically made in Maldivian Rufiyaa (if you want to pay in US dollars, they will usually convert it for you, but it’s not very common and can be inconvenient in the local context).

For resort islands, you can pay for everything, including accommodation, meals, water activities, and even small souvenir expenses, with a credit card. So, there is no need to prepare US dollar bills even here.

So when do you need US dollars? To give an example, it might be when tipping staff at a resort hotel. It might feel smarter to give a tip in US dollar bills than in Maldivian Rufiyaa, but there is no specific etiquette for this, so honestly, it might not be necessary (by the way, a friend of mine tipped with Euro bills).

4. When withdrawing Maldivian Rufiyaa, keep it to a minimum ⇒ Not a myth, but there are many ways to use it!

As explained so far, when withdrawing cash locally, Maldivian Rufiyaa is the only choice. However, since Maldivian Rufiyaa is a minor currency, you cannot exchange it back into other currencies like US dollars or Japanese yen later, and if you have too much left, it can be a problem. While it’s true that you should be careful not to withdraw too much, surprisingly, having a bit more Maldivian Rufiyaa can be useful during your trip!

As mentioned earlier, in inhabited islands, including Male city, you generally pay for any services or goods with Maldivian Rufiyaa, so there are more ways to use it than you might think. Also, in most cases, you can combine Maldivian Rufiyaa, US dollars, and credit cards during payment. For example, in one transaction, you can buy a 700 MVR item by paying with a 500 Rufiyaa bill, a 10-dollar bill, and the remaining balance with a credit card.

You might end up buying a lot of Maldives souvenirs at the end of your trip, but at that time, using the above currency combination payment efficiently and using up all your Maldivian Rufiyaa can be effective!

How was it?

This time, based on the latest information verified on-site, I explained the correct currency exchange situation in the Maldives! Basically, as long as you have a credit card that allows cash advances overseas, you won’t have any trouble locally. However, I recommend carefully checking the payment methods at your destination according to your travel plans.

In general, preparing three credit cards that allow cash advances + about $100 in US cash, including reserves, should be enough for your trip!

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