Circulation of Money in Maldives.

Currency circulation in Maldives is completely different compared to other countries. What is the effect of this to businesses? There are advantages and disadvantages for businesses from this.

Last year government passed a budget of 27 Billion Rufiyaa and before that year 22 Billion. Which means there are more than 60 billion rufiyaa in circulation. The actual amount could be more than that because this is just two year’s budget figures.
If we distribute this amount equally within the Maldives, each atoll should circulate around 10 billion Rufiyaa. As we all know as certain as the brightest sun this is not the case.
So where is all that money? it seems all the money is rotating within Male’ area. As if there is a tornado of money circulating inside this city.

By looking at goods circulation we can guess how much is distributed around Maldives, it seems the amount is less than 1 billion in south and 1.5 billion in north. Rest 59 billion rotating in Male’.

In order for money to circulate, there must be commodities produced there. Commodities, labor and services. North and south, whatever the money is transferred there it is due to Labor performed by people from these areas. Since their is few other commodities produced there few money rolls to this area as well.
So why such a high amount of cash is rotating within Male area?

In male’ there is a population more than​ 100,000, since each person is a consumer, this number of people increase circulation up to 5-10 billion. Not only they are consumers, they also sell labor. That increases circulation more than north or south. After​ that there are businesses which produce commodities and create labor. And finally the largest money circulator, the central government, which is also located in Male, which alone is responsible for the whole circulation.

Since Jobs, commodities, businesses and government is located in central Male’ it is no doubt that money will circulate within this region.