Root cause of skyrocketing USD rate is government's excessive and unnecessary spending: Faisal
22 އޯގަސްޓު 2026 | ހޮނިހިރު 20:44Former Vice President Faisal Naseem has attributed the rising value of the dollar to the government's wasteful spending on large-scale projects, such as the acquisition of surveillance drones for maritime monitoring and the Rasmalé land reclamation initiative. Consequently, he called on the administration to revise its current policies and implement urgent cost-cutting measures to navigate the prevailing economic challenges.
Former Vice President Faisal Naseem. | Raajje MV
Former Vice President Faisal Naseem has stated that the public must acknowledge that the skyrocketing exchange rate and the extreme difficulties in obtaining US dollars are the direct consequences of the government engaging in excessive and unnecessary spending.
In a social media post, Faisal stated that it is time to acknowledge that the dollar rate is soaring because the government is engaging in excessive, unnecessary spending. He noted that this surge is occurring despite an increase in the government's dollar revenue and the implementation of regulations requiring resorts to convert a specific portion of their foreign currency earnings.
Faisal stated that despite the government's denials, one of the primary reasons for the unprecedented surge in the dollar exchange rate is the significant expenditure on high-priced drones under the guise of maritime surveillance. He further noted that the government is funneling millions of dollars into an expensive land reclamation project that is neither necessary at this time nor likely to be required for the next twenty years.
Faisal stated that while one of the world's largest dredgers has been brought in to reclaim a massive lagoon for the Rasmalé project at an undervalued rate, the government is obligated to pay hundreds of thousands of dollars in daily rent for the vessel, regardless of whether work is being carried out. Furthermore, he noted that for the reclamation process itself, the state must incur costs amounting to several dollars for every cubic meter of sand discharged by the dredger.
Reflecting on the current situation, Faisal noted that these expenditures are necessary for the development of land reclaimed by the previous administration. He emphasized that under responsible governance, the government must always prioritize the best interests and benefit of the citizens.
Faisal called on the government to suspend non-essential expenditures during these challenging times and to strive towards keeping the cost of goods affordable for the public. He further emphasized that to overcome the current economic hardships, the government must facilitate opportunities for Maldivian businesses to grow and prosper.
Furthermore, Faisal urged the government to revise its policies, reduce expenditures, and identify new avenues for increasing revenue.
