President Muizzu Knew State Firms Were Buying Dollars on the Black Market

On Wednesday, the Parliament's Public Accounts Committee passed amendments to the Foreign Exchange Act, designating the sale and advertisement of dollars on the black market as an offense punishable by a fine of up to MVR 1 million. This legislative move comes despite President Dr. Mohamed Muizzu previously acknowledging that the black market has become a platform where official government transactions are being conducted.

Furthermore, an amendment to the Foreign Exchange Act proposed to the Parliament’s Public Accounts Committee by MP Mohamed Mamdhooh, representing the government-aligned Funadhoo constituency, states: "It is prohibited for any party to sell or attempt to sell foreign currency through any means at a rate higher than the official rate or outside the exchange rate band established and published by the Maldives Monetary Authority (MMA). The penalty for this offense, depending on its severity, shall be a fine ranging between MVR 25,000 and MVR 1 million."

President Muizzu’s remarks during the President’s Office podcast "With the People" on March 27, 2025, clearly indicate that the government recognizes the dollar black market and has been utilizing it for official transactions.

In this regard, President Muizzu stated that state-owned enterprises had been purchasing foreign currency through the dollar black market.

According to the amendment proposed by government MP Mamdhooh, advertising the sale of foreign currency at rates exceeding those set by the Maldives Monetary Authority (MMA), or publishing material that encourages such transactions, will be classified as a legal offense.

The penalty for this offense is a fine ranging from MVR 25,000 to MVR 500,000.

Even when Mamdouh proposed this amendment, and when Muizzu stated that state-owned enterprises were purchasing dollars from the black market, the buying and selling of foreign currency through such channels was already prohibited. Furthermore, trading dollars for a commission remains illegal under the law, as it was then and continues to be now.

After the President's Office published videos on its official platforms featuring the President himself speaking in a manner that suggests the government condones the dollar black market, the administration is now abruptly attempting to suppress the media and use its influence to falsely project that no such black market exists.

Under the proposed legislative amendments, "advertising and promotion" is defined as the public disclosure, publication, dissemination, repetition, or distribution of information via digital tools, platforms, or any other means to advertise, encourage, or promote foreign currency exchange. This specifically pertains to transactions conducted at rates exceeding the official exchange rates or outside the bands established by the Maldives Monetary Authority (MMA).

The bill further stipulates that if a legal entity or a registered business is involved in the commission of such an offense, in addition to the individual or individuals responsible, the entity shall be subject to a fine ranging from MVR 100,000 to MVR 5 million.

Given that the President himself has admitted to purchasing dollars from the black market at rates exceeding those set by the Maldives Monetary Authority, the first course of action must be to impose the legal penalties prescribed by law against those involved in such activities.