Dollar shortage hits black market: Ameer

Former Finance Minister Ibrahim Ameer has stated that while the dollar rate in the Maldives has surged to extreme levels, the currency has now become unavailable even on the black market.

Ameer made these remarks during a panel discussion hosted by the opposition Maldivian Democratic Party (MDP) on Sunday night. During the session, Ameer also delivered a detailed presentation.

In his presentation, Ameer stated that the exchange rate for the US dollar in the Maldives has now risen to approximately 21 Rufiyaa. He noted that as the dollar's value climbs, numerous economic activities across the country have come to a standstill.

Specifically, he highlighted that Public Sector Investment Programs (PSIP) have stalled, small and medium-sized enterprises have seen their operations grind to a halt, and a significant number of companies within the Maldives' construction industry have also ceased operations.

Noting that the dollar rate currently stands at 21 Rufiyaa, Ameer highlighted in his presentation that the Maldives is facing a severe dollar shortage. He further stated that while dollars were previously accessible through the black market, they are now unavailable even through those channels.

Additionally, the presentation noted that following the government's 2025 policy changes regarding foreign exchange conversion, a total of $650 million has been channeled into the banks and the Maldives Monetary Authority (MMA).

We are currently witnessing the dollar exchange rate climb to approximately 21 Rufiyaa. As the rate reaches this level, it is evident that a significant portion of the country's economic activity has come to a standstill. Government Public Sector Investment Programs (PSIP) have stalled, small and medium enterprises have ceased operations, and numerous companies within the national construction industry have also ground to a halt. Despite this slowdown, the black market rate remains near 21 Rufiyaa, and we anticipate that this rate will continue to rise in the future.

Ibrahim Ameer / Former Finance Minister

Furthermore, he stated that the MDP had previously highlighted that the dollar rate would not decrease even if foreign currency is exchanged through banks. He also noted that President Dr. Mohamed Muizzu’s claims regarding a decline in the dollar rate were not based on any sound economic principles. In addition, Ameer pointed out that the government's policies are actually driving the dollar rate higher.

Ameer stated that the dollar shortage is causing significant challenges for both the general public and businesses in the Maldives. He noted that card transactions by citizens have virtually come to a standstill, while e-commerce sites have begun imposing additional charges and implementing transaction limits.

Noting that the Maldives is currently on the brink of a cost-of-living crisis, Ameer stated that the expenses for citizens have escalated significantly. He further noted that the prices of goods continue to rise sharply. He added that due to the difficulties businesses face in obtaining US dollars, there is no opportunity for them to operate effectively.