All Infrastructure Projects Must be Halted Until Dollar Rate Stabilizes: Nasheed
In a post on X, former President Nasheed asserted that the government should refrain from all expenditures, with the exception of essential services, until the value of the dollar stabilizes. He further emphasized the necessity of immediately halting all infrastructure development projects and suggested that incomplete projects in the islands be transferred to the respective island councils for management.
MDP's Chairperson, and former President Mohamed Nasheed speaking at an MDP event. | raajjemv
Former President and MDP Chairperson Mohamed Nasheed has asserted that all infrastructure development projects must be suspended until the value of the US dollar decreases.
In a post on 'X', Nasheed stated that the government should refrain from any expenditure other than those essential for basic services until the dollar rate is stabilized. He emphasized that all infrastructure works should be halted immediately, suggesting that it would be more effective to hand over incomplete island projects to the respective local councils.
Nasheed further noted that local councils could complete these projects through cross-subsidy arrangements.
Nasheed’s remarks come at a time when the MDP Parliamentary Group has requested a meeting with the Governor of the Maldives Monetary Authority (MMA), Ahmed Munawar, to discuss recent fluctuations in the foreign exchange market and the emergence of a black market.
Additionally, during a recent MDP panel discussion, former Hulhudhoo MP Ilyas Labeeb highlighted that despite an increase in dollar inflows to the Maldives, the MMA has failed to release a corresponding amount to the banks. He noted that this discrepancy has caused significant difficulties for businesses and the general public in accessing foreign currency.
Ilyas Labeeb also stated that the Bank of Maldives (BML) being compelled to acquire dollars from the black market due to shortages is clear evidence of the current fiscal challenges.
