Despite claims granting Majlis majority to PNC would lead to a decrease in USD rate, Minister Saeed fails to explain why issue remains unresolved
Economic Minister Mohamed Saeed avoided giving a direct timeline for lowering the dollar exchange rate during a parliamentary inquiry, instead highlighting that the government has increased its foreign currency disbursements. Despite the black market rate exceeding 20 Rufiyaa per dollar, the Minister maintained that recent foreign exchange policy reforms would resolve the issue, even as businesses warn that the ongoing dollar shortage threatens to drive up the cost of goods.
Mohamed Saeed, the Minister of Economic Development and Trade in President Dr. Mohamed Muizzu’s administration. | People's Majlis | People's Majlis
Minister of Economic Development, Transport, and Trade Mohamed Saeed has failed to provide a clear answer when questioned about the government’s inability to stabilize the rising value of the US dollar. Despite government assurances that granting a parliamentary majority to the ruling People's National Congress (PNC) would halt the continuous appreciation of the dollar, the issue remains unresolved even months after the administration secured a supermajority in the People's Majlis.
During Monday's People's Majlis session, 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.
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 take note of 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 bold reforms to the foreign exchange policy, changes 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 noted that the dollar is currently being traded at 20 Rufiyaa. The Member further remarked that the response required was a direct answer, not 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 reported that a reduction in external dollar support has made it exceptionally difficult to source foreign currency through unofficial channels. This scarcity is driving up procurement costs, raising concerns that the prices of essential goods may soon increase for consumers.
President Muizzu and senior government officials continue to maintain that the black market exchange rate will be driven down once tourism businesses begin exchanging their dollar revenues 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.
