USD rate at MVR 20.25: Ghafoor challenges government narrative on currency shortage

Abdul Ghafoor Moosa, Acting Chairperson of the main opposition Maldivian Democratic Party (MDP), has stated that he will present statistical evidence to demonstrate that the current dollar shortage in the Maldives is not the result of an actual lack of foreign currency within the country.

He made the remarks while addressing a rally organised by MDP on Thursday night.

Ghafoor noted that the average exchange rate of the U.S. dollar in Maldives has now climbed to MVR 20.25. He pointed out that 2024, extending into 2025, has been a period of substantial foreign currency inflows to the state treasury, arguing that there is therefore no legitimate justification for the dollar rate to remain at such elevated levels.

He explained that projects valued at USD 400 million have been awarded to foreign companies, leading to a steady outflow of dollars from the country. He reiterated that the current scarcity is not due to a physical absence of dollars but is driven by other factors, which he said he would substantiate using financial data.

Ghafoor elaborated that while public dollars, government-held dollars, and converted foreign exchange are kept within the Bank of Maldives (BML), USD 400 million worth of projects have been handed to foreign firms, resulting in those funds being siphoned out of the country. He further stated that dollars earned by Maldives Airports Company Limited (MACL) are being diverted overseas to finance the Ras Malé reclamation project. According to Ghafoor, the present dollar shortage is a hardship imposed by the current administration.

He also described the administration as corrupt, alleging that its actions are eroding the country’s democratic framework while operating under the guise of democracy.