Minister Saeed fails to provide timeline for dollar rate drop, despite previous assurances of a decline by March
Economic Minister Mohamed Saeed has declined to provide a specific date for when the value of the US dollar will decrease, avoiding a direct answer to inquiries from Members of Parliament. Despite this, the Minister highlighted that the current administration has increased foreign currency disbursements and implemented unprecedented policy reforms to stabilize the economy. However, the business community remains concerned that rising commodity prices are inevitable as long as the dollar continues to trade above 20 Rufiyaa on the black market.
Mohamed Saeed, the Minister of Economic Development and Trade in President Dr. Mohamed Muizzu’s administration. | People's Majlis | People's Majlis
President Dr. Mohamed Muizzu has stated that the value of the dollar will decrease within the first three months of 2026; however, his Economic Minister, Mohamed Saeed, was unable to specify a timeline for when the exchange rate would drop.
During Monday's People's Majlis sitting, Minister Saeed appeared for questioning, where Hussain Ziyad, the MDP Member for Vaikaradhoo, inquired about the timeline for reducing the current market exchange rate of the US dollar.
The member’s inquiry centered on the government's failure to address the continuous rise in the dollar exchange rate. Despite assurances that granting a parliamentary majority to the ruling PNC would stabilize the currency, the issue remains unresolved more than a year after the party secured a supermajority in the People’s Majlis.
Declining to answer the question directly, the Minister instead pivoted to a different topic. He stated that securing the parliamentary majority was the most significant achievement the Maldives has attained in recent times.
Out of respect for the honorable member, I will reiterate the same explanation I provided in response to the question posed by Honorable Member Nazil. So far this year, a total of $106.2 million in foreign currency has been released. This amounts to an average of approximately $35.4 million per month—I ask the honorable member to note this figure. This represents a 142 percent increase compared to the same period in 2023.Mohamed Saeed, the Minister of Economic Development and Trade in President Dr. Mohamed Muizzu's administration.
Furthermore, Saeed stated that this administration has introduced reforms to the foreign exchange policy that no previous leader had the courage to implement.
After the Minister failed to address the specific question and instead spoke on unrelated matters, the Member pointed out that the dollar is currently being traded at 20 Rufiyaa. The Member further remarked that the answer should be substantive rather than a "love story."
According to currency exchange groups, the US dollar is currently trading between MVR 20.05 and MVR 20.20 on the black market. Several importing companies have noted that a reduction in foreign dollar support has made it exceptionally difficult to source currency through informal channels. This scarcity has significantly increased the cost of procurement, raising concerns that the prices of essential goods may soon rise for consumers.
President Muizzu and senior government officials continue to maintain that the exchange rate in the dollar black market will decline once tourism businesses begin exchanging their foreign currency through the formal 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 the US dollar 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 new policies.
