Dollar rate hits MVR 21.80, sparking widespread public concern

The exchange rate for the US dollar has surged in the black market, with the price of a dollar climbing above 21.80 Maldivian Rufiyaa.

As the value of the dollar surges and the Maldivian Rufiyaa weakens, the cost of goods has skyrocketed to unprecedented levels. This sharp increase in exchange rates has left small and medium-sized enterprises (SMEs) across the country in a state of deep despair. Business owners report that the scarcity of dollars and the necessity of purchasing them at inflated rates on the black market have forced them to double the price of their merchandise. Consequently, many businesses are raising concerns that they are on the brink of collapse.

The dollar shortage comes at a time when the current administration claims to have repaid a record amount of debt. However, the government has been characterized by its wasteful expenditure of foreign currency and an apparent inability to secure new loans.

Although maintaining the dollar exchange rate at MVR 15.42 was a key campaign pledge of President Muizzu, the rate has since spiraled out of control. In response, President Muizzu, Economic Minister Mohamed Saeed, senior government officials, and PNC activists have consistently attributed the situation to the economic policies implemented by the previous MDP administration.

Economic Minister Saeed had previously stated that the value of the dollar would be brought down if the ruling party, PNC, secured a majority in the People's Majlis. However, despite the government obtaining a supermajority in parliament, the dollar rate has failed to decline, drawing sharp criticism from both the business community and the general public regarding the administration's economic policies.