Nasheed: Government Lacks Capacity to Earn Dollars, Resolve Crisis
MDP Chairperson Mohamed Nasheed has called on the government to engage in dialogue to address the severe foreign currency shortage in local banks, which has sparked widespread concern among citizens and businesses. Expressing alarm over the administration's inability to secure foreign funding and the decline in tourism revenue, Nasheed warned that the exchange rate could surge to 23 Rufiyaa per dollar. He emphasized the urgent need for immediate action to stabilize the nation's deteriorating financial situation and prevent further economic decline.
Former President Mohamed Nasheed, Chairperson of the MDP, at a press conference held on Sunday. | raajjemv
The Chairperson of the MDP and former President, Mohamed Nasheed, has characterized President Dr. Mohamed Muizzu’s administration as incompetent, asserting that the government lacks the capability to resolve the country’s ongoing dollar shortage or secure the necessary foreign exchange.
Speaking at a press conference on Sunday, President Nasheed stated that Maldivian banks, particularly the national bank, Bank of Maldives, are completely depleted of US dollars. He noted that the lack of foreign currency has caused significant public concern and left the business community in a state of uncertainty.
The Bank of Maldives is completely depleted of foreign currency reserves. There are no dollars left. This has caused immense public concern, and experts who study these economic trends have now sounded the alarm. Therefore, we reiterate that the government must return to the negotiating table. This administration has failed to secure any foreign currency from abroad. Not a single dollar. They have been unable to raise funds through bond sales, nor have they managed to secure any concessional loans. No other efforts have yielded any additional foreign exchange.The Chairperson of the MDP, former President Mohamed Nasheed.
President Nasheed stated that dollar revenues from tourism have plummeted significantly due to the ongoing conflict in the Middle East. He further noted that these developments underscore the current administration's inability to stabilize and improve the nation's financial situation.
Furthermore, President Nasheed reiterated that this administration lacks both the capability to acquire foreign currency and the competence to resolve the ongoing dollar crisis facing the nation.
He noted that while some are currently predicting the dollar rate will rise to 21 Rufiyaa, it is estimated that the figure could even climb as high as 23 Rufiyaa. President Nasheed stated that the country’s situation would eventually deteriorate to a point where dollars become unavailable, and even private individuals would face difficulties withdrawing their own foreign currency deposits from banks. Consequently, he emphasized that the MDP consistently urges the government to come to the negotiating table.
