Nasheed: Dollar Shortage Persists Despite Government Conversion Mandate
30 ސެޕްޓެމްބަރު 2026 | ބުދަ 08:19The MDP Chairperson has criticized the government's policy of mandating resorts to convert a portion of their foreign currency earnings, arguing it is an ineffective solution to the rising dollar rate and the challenges facing businesses. Expressing concern over the lack of results from the administration's fiscal reforms, Fayyaz Ismail warned that the country's dwindling reserves are heightening the risks to the national economy.
The Chairperson of the MDP, former President Mohamed Nasheed. | raajjemv
The Chairperson of the opposition MDP and former President, Mohamed Nasheed, has stated that there has been no relief to the ongoing dollar shortage and that the value of the dollar continues to rise.
In a post on X, the former President stated that the unresolved dollar shortage is severely impacting private businesses. Nasheed noted that entrepreneurs are currently unable to process telegraphic transfers (TTs), leaving them unable to import essential goods.
Nasheed stated that the government mandated resorts to exchange 40 percent of their foreign currency earnings and increased the GST levied on foreign tour operators in the hope of securing $160 million by the end of September. However, he noted that the administration failed to achieve any of its objectives, leaving the public to bear the brunt of the resulting losses and hardships.
As the Maldives' foreign exchange reserves plummet to historic lows, economic experts and opposition figures are intensifying their criticism of the government's fiscal policies. Concerns are mounting that the nation's financial system could face a significant loss of confidence, particularly due to the escalating challenges in meeting external debt obligations.
