MDP PG requests meeting with Governor to discuss recent fluctuations in foreign exchange market and emergence of a USD black market
The Maldivian Democratic Party (MDP) PG has requested a meeting with the Governor of the Maldives Monetary Authority (MMA) to discuss the mounting challenges faced by the public and businesses due to the expanding foreign exchange black market and subsequent dollar limits imposed by banks. During this meeting, the opposition group intends to seek clarification on the central bank's independence and explore potential strategies to overcome the country's current economic hurdles.
Mohamed Ibrahim (Kudoo), Member of Parliament for the North Galolhu constituency, speaking at a parliamentary sitting. | Majilis
Mohamed Ibrahim, the Member of Parliament for North Galolhu, has proposed a meeting between the Governor of the Maldives Monetary Authority (MMA), Ahmed Munawar, and the Maldivian Democratic Party (MDP) Parliamentary Group (PG) to address ongoing shifts in the foreign exchange market and the emergence of a black market.
In the letter addressed to Governor Munawar, the member requested a meeting to discuss concerns regarding ongoing fluctuations in the foreign exchange market and challenges in the implementation of monetary policy.
The member noted that although the Foreign Exchange Act came into effect on January 1, 2025, systemic challenges in its implementation have led to the emergence of an informal foreign currency market, or black market.
The MP requested a meeting at the earliest opportunity to discuss the challenges facing the public and the Maldivian economy due to this issue. The letter outlined the primary concerns and key points the Member intends to clarify and discuss during the meeting.
Specifically, the Bank of Maldives (BML) has reportedly begun purchasing dollars at high rates equivalent to the parallel market under the guise of investments. Consequently, a request has been submitted to clarify the regulatory procedures governing the purchase of foreign currency within the Maldivian banking system at rates exceeding the official exchange rate. The inquiry also seeks to determine the potential impact of these transactions on the national exchange system and the adverse consequences they may have on black market rates.
Furthermore, the agenda includes discussions regarding the challenges and concerns faced by students studying abroad, individuals seeking medical treatment overseas, and the general public, following the reduction of foreign currency transaction limits on cards by BML and other banks.
Additional points slated for discussion include the challenges faced in importing goods due to the skyrocketing exchange rate in the parallel market and the extreme difficulty in sourcing dollars even at premium rates, which has subsequently led to rising commodity prices.
Although the MMA Act grants the central bank full autonomy to determine monetary policy, concerns have been raised regarding its independence and credibility, as high-level political figures within the government continue to announce such critical decisions.
Furthermore, a proposal has been submitted to discuss the ongoing efforts by the central bank to alleviate the dollar shortage currently impacting businesses, the general public, and the overall economy. This includes identifying ways in which the MDP PG can provide legislative support to expedite these measures.
Given that these issues directly impact the daily lives of citizens and the country's economic stability, the member has requested a meeting between the Governor and the MDP PG, seeking an appointment within the coming week.
