Banning reports on black market dollar rates won't lower prices: Yameen

Former President Abdulla Yameen has said restricting media reports on black market foreign exchange rates will not reduce the price of the US dollar, calling on the government to explain how it plans to address the foreign currency shortage.

Yameen made the remarks on Saturday night at an event in GDh. Thinadhoo marking the 60th anniversary of the island’s resettlement.

His comments follow a decision by Parliament’s Public Accounts Committee to amend the Foreign Exchange Bill to penalise the publication or dissemination of information on foreign currency transactions conducted at rates outside those set by the Maldives Monetary Authority (MMA).

The move came after Economic Development and Trade Minister Mohamed Saeed linked reports by some media outlets on black market dollar rates to increases in the price of the currency.

Speaking in Thinadhoo, Yameen said the Maldives faces a shortage of foreign currency and argued that restricting public discussion would not address the underlying problem.

“Looking at today’s position, the state’s usable reserves hold approximately $30 million for these purposes [importing essential foodstuffs]. This is a tiny amount. So why shouldn’t we speak about this? We need to talk about it and work towards solutions,” Yameen said.

He also said he did not expect the exchange rate between the US dollar and the Maldivian rufiyaa to improve over the coming months.

“We do not believe there will be a favourable shift in the dollar rate against the Maldivian rufiyaa within the next three months or the first six months of next year,” he said.

Yameen criticised the proposed restrictions on publishing information about black market rates, arguing that problems cannot be addressed by preventing discussion about them.

“If something needs fixing, it must be discussed. God forbid, if leprosy spreads in an island and people go to a doctor, does redefining the word ‘leprosy’ under the law cure the patients?” he said.

Yameen said media outlets and members of the public could resort to alternative terms to communicate exchange rates if reporting them directly becomes an offence.

“For example, speaking metaphorically, ‘a stem of red roses currently costs MVR 22.85.’ These are the kinds of alternative terms people will resort to,” he said.

“Can major national issues be solved by putting national interest first as a pretext to halt discussions and gag people? That is certainly not how it works.”

The Public Accounts Committee last week approved amendments that would make it an offence to advertise, promote, publish or disseminate information about foreign exchange transactions conducted outside rates or bands set by the MMA.

Yameen called on Finance Minister Hassan Zareer and MMA Governor Ahmed Munawar to explain to the public how the government intends to address the foreign exchange situation.

He said providing information about the government’s strategy could give the public more certainty.

“But instead of explaining the solution, banning everything by law won’t make the problem go away. Trying to suppress it like this will only add fuel to the fire,” Yameen said.