Saeed Calls PNC Majority "Lucky" as USD Shortage Persists

Despite the government's prior assurances that granting a parliamentary majority to the ruling PNC would halt the continuous rise in the dollar rate, Minister of Economic Development, Transport and Trade Mohamed Saeed has once again provided evasive and inconsistent responses when questioned about the lack of a solution, even after the administration secured a supermajority months ago.

During Monday's parliamentary sitting, Minister Saeed was summoned for questioning, where Maradhoo MP Ahmed Didi raised concerns regarding the unchecked rise in the dollar exchange rate.

Two years ago, during the parliamentary campaign, you personally pledged that if granted a majority, you would bring the dollar exchange rate down to the official rate. You assured the public that this was an achievable goal. Did you make that promise to the people based on any actual research? You now claim that the MDP did this or that, but did you fail to conduct your research back then before making those false promises?

Ahmed Didi, Member of Parliament for the Maradhoo constituency.

Although members of parliament and journalists have repeatedly posed that question to the minister in the past, he has consistently avoided providing a direct answer. During Monday's sitting as well, the minister chose to speak on entirely different matters instead.

Saeed stated that the People's National Congress (PNC) securing a majority in Parliament was a stroke of luck for the Maldives, asserting that the country would have otherwise faced financial bankruptcy.

Minister Saeed further highlighted the Maldives' track record in debt repayment, noting that the country has settled $1.2 billion in debt to date. He also stated that the government has successfully revitalized several state-owned enterprises that were previously on the brink of bankruptcy.

"Look at the facts: we have repaid $1.2 billion in debt within just two years. Our credit rating is improving because we achieved this while preventing national bankruptcy and ensuring the secure supply of 26 categories of basic commodities and 164 types of essential goods on a daily basis. We have managed to revitalize insolvent state-owned enterprises and continued to issue payments to numerous debt-ridden small businesses despite the immense challenges. This progress is the direct result of our patience and strategic management."

Minister of Economic Development, Transport and Trade Mohamed Saeed

Currency exchange dealers report that the US dollar is currently trading between MVR 20.20 and MVR 21.00. Several major importers noted that following a reduction in dollar support provided by banks, they are facing extreme difficulties in sourcing foreign currency from the black market. This shortage has significantly increased procurement costs, raising the likelihood of a hike in the retail prices of essential goods.

President Muizzu and senior government officials maintain that the black market exchange rate will decline once tourism businesses begin exchanging dollars 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 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 new currency policies.