Saeed blames MDP exchange rate policy, money printing for dollar shortage
Saeed said the exchange rate band introduced after the MDP came to power in 2008 was the origin of the current challenges.
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Minister of Economic Development, Transport and Trade Mohamed Saeed has attributed the Maldives' foreign currency shortage to exchange rate policy changes introduced during former President Mohamed Nasheed's administration and money printing under the previous government.
Saeed made the remarks during Monday's sitting of the People's Majlis in response to questions from opposition Maldivian Democratic Party (MDP) MP Hussain Ziyadh, who represents the Vaikaradhoo constituency.
Ziyadh questioned why the government had been unable to reduce the market price of the US dollar, noting that it continues to trade above MVR 20 despite the official exchange rate remaining at MVR 15.42.
In response, Saeed said the exchange rate band introduced after the MDP came to power in 2008 was the origin of the current challenges.
He said the Nasheed administration had introduced an official trading band between MVR 10 and MVR 15 for the US dollar, adding that the effects of that policy continue to be felt.
"President Nasheed's government spoke about establishing a band between MVR 10 and MVR 15. As I have stated before, that issue persists today. It is the reason the public has been unable to escape these difficulties. I am reiterating this point once again," Saeed said.
The minister also argued that the suspension of provisions of the Public Finance Act during the administration of former President Ibrahim Mohamed Solih, which allowed the state to print money, contributed to pressure on the Maldivian rufiyaa.
He said members of the then opposition had warned at the time that the policy would have long-term consequences.
During the debate, another MP referred to campaign statements made by Saeed during the 2024 parliamentary elections, in which he said the value of the US dollar would decline if the ruling People's National Congress (PNC) secured a parliamentary majority.
Responding to the question, Saeed said the PNC's parliamentary majority had helped prevent more serious economic difficulties, including the risk of bankruptcy. However, he did not specify when the market exchange rate could return closer to the official rate.
The Maldives Monetary Authority and the Bank of Maldives have introduced a number of measures in recent months aimed at improving the availability of foreign currency and easing pressure on the exchange market.
