Saeed deflects questions on soaring dollar rates, urges merger of two elections
When questioned by reporters regarding campaign pledges to stabilize the dollar exchange rate, Economic Minister Mohamed Saeed avoided a direct response, instead highlighting the importance of consolidating elections. Despite the black market rate exceeding MVR 20 and sparking concerns over rising commodity prices, the government maintains that current policies will resolve the issue, with the President further assuring that the official exchange rate will be accessible within the next two years.
President Muizzu's Minister of Economic Development and Trade, Mohamed Saeed. | President's Office | President's Office
Minister of Economic Development and Trade Mohamed Saeed has avoided addressing concerns regarding the government's failure to stabilize the rising dollar rate, despite previously assuring that a parliamentary majority for the ruling PNC would resolve the issue. When questioned on why the problem persists months after securing a supermajority, the Minister sidestepped the inquiry, choosing instead to emphasize the importance of synchronizing presidential and parliamentary elections.
During the 2024 parliamentary election campaign, Minister Saeed assured the public that securing a legislative majority would enable the Maldivian Rufiyaa to strengthen against the US Dollar by 30 to 40 percent. The Minister further stated that this appreciation would eventually drive the exchange rate below the current official peg of 15.42 Rufiyaa per Dollar.
During a press conference held at the President's Office on Tuesday, RaajjeTV questioned the Minister regarding the escalating exchange rate of the US dollar. Despite the government securing a 75-seat supermajority in Parliament several months ago, no solution has been reached to address the issue. However, the Minister declined to provide an answer to the question.
Instead, the Minister spoke entirely about why the government required a supermajority in Parliament at that time. He further emphasized the importance of synchronizing the two elections and argued that voters should support candidates from the ruling PNC in the local council elections. He failed to address the question asked in any capacity.
Brighter days lie ahead for us. My hope is for us to secure victory in the local council elections as well. Alongside this, it is crucial that we move toward holding presidential and parliamentary elections on the same day. This is vital because such an arrangement ensures economic certainty. It will establish a framework that provides us with the necessary cooperation to fulfill the promises made to the people for this five-year term.Minister of Economic Development and Trade Mohamed Saeed, serving under the administration of President Dr. Mohamed Muizzu.
According to currency exchange groups, the US dollar is currently trading between MVR 20.05 and MVR 20.20. Several importing companies have noted that a reduction in foreign dollar support has made it exceptionally difficult to source currency from the black market. This scarcity has increased the cost of procurement, raising concerns that the prices of goods may soon rise for consumers.
President Muizzu and senior government officials continue to maintain that the black market exchange rate for the US dollar will decline once tourism businesses begin exchanging their foreign currency earnings through the banking system.
The government maintains that the current foreign exchange policies will effectively resolve the ongoing dollar shortage. However, despite President Dr. Mohamed Muizzu’s assurances that US dollars will be available at the official rate within the next two years, the market value of the dollar has continued to rise since the implementation of his administration's currency policies.
