MPs raise concerns over MMA governor’s silence on rising dollar rate

Several members of parliament on Tuesday criticised Maldives Monetary Authority (MMA) Governor Ahmed Munawwar for remaining silent as the exchange rate for one US dollar reached MVR 20 in the local market.

The issue was raised during debate on the Copyright Bill, with Maldivian Democratic Party (MDP) MP Mauroof Zakir initiating the criticism. He said the Governor had not taken necessary steps to maintain the value of the Maldivian rufiyaa through sound fiscal policies.

Zakir said the current situation had reached a point that could justify a no-confidence vote against the MMA Governor. "The Governor is silent about the current state of fiscal policy. How can that be responsible governance?" he asked. He also said small businesses needed reassurance, and highlighted delays in government payments to private companies and the shift from US dollars to rufiyaa in service charge disbursements.

Hulhumalé South MP Ahmed Shamheed echoed the concerns, noting that the MMA Governor, as the lead authority in monetary policy, had not issued any public statements despite rising concerns.

The Governor also faced criticism from Mohamed Abbas, MP for the Maldives Development Alliance (MDA). Abbas said Munawwar was appointed with expectations of reform but had failed to deliver. “He has not done anything to stabilise the economy. If he cannot act, he should resign,” Abbas said.

Abbas added that the dollar rate in the black market could reach MVR 23 by August if no intervention is made. He called on the MMA to take immediate action to address the matter.

The rufiyaa has depreciated gradually since the beginning of the month, with the unofficial market rate reaching MVR 20 per US dollar last Friday, a period that typically sees lower tourist arrivals.

The MMA has not issued a statement in response to the comments or the recent changes in the market exchange rate.