Nasheed says Maldives is currently heading towards a state of "hyperinflation"
14 އޯގަސްޓު 2026 | ހުކުރު 07:42Former President Mohamed Nasheed has stated that the black market dollar rate has surged significantly due to the government utilizing national reserves to settle debts. Calling on the administration to consult with the Maldivian Democratic Party (MDP) to resolve the crisis, Nasheed asserted that his party possesses the necessary expertise to secure the required foreign exchange for the country.
Scenes from the "Dhathivejje" protest organized by the MDP. | Raajje MV
The Maldives is currently heading towards a state of "hyperinflation," warned Mohamed Nasheed, the Chairperson of the Maldivian Democratic Party (MDP) and former President.
Speaking at the MDP rally titled "Dhathivejje" on Thursday night, former President Mohamed Nasheed claimed that President Dr. Mohamed Muizzu’s administration has withdrawn USD 1 billion from the national reserves to settle foreign debts. Consequently, Nasheed asserted that the country's reserves have now been completely depleted of US dollars.
President Nasheed stated that the current administration settled its debt obligations using dollar reserves secured and maintained during the tenure of former President Ibrahim Mohamed Solih.
Former President Nasheed stated that the Maldives Monetary Authority (MMA) is not selling dollars to commercial banks. He further noted that as a result, the public is unable to obtain dollars from commercial banks and is forced to purchase them at inflated rates from the black market.
As we gather here today, the exchange rate for the US dollar has already surpassed 20 to 22 Rufiyaa and is currently trending toward 23 Rufiyaa. It is now difficult for us to envision a scenario where the dollar rate will decrease at any point as long as this administration remains in power.President Nasheed
Nasheed stated that it is difficult to foresee a decline in the value of the dollar under President Muizzu's administration, predicting instead that the exchange rate will continue to rise day by day. He further noted that the public is currently witnessing a surge in the cost of living, with commodity prices becoming increasingly unaffordable for the citizens.
Furthermore, calling on the government to engage in dialogue with the MDP, President Nasheed stated that the party knows how to secure funding and is well-versed in bringing foreign investment into the Maldives.
