The Maldives Trade Association (MTA) has called on the Maldives Ports Limited (MPL) to reconsider plans to require cargo boats to pay fees in US dollars with effect in April.
MTA said in a press release today that having to pay MPL fees in dollars would force import businesses that conduct most transactions in dollars to purchase large sums of foreign currency at high prices amid a dollar shortage in the Maldives.
"One reason for this is the unavailability of dollars from banks in the Maldives even for businesses to buy the amounts that they need," the Trade Association statement read.
The association warned of price hikes if businesses face increasing expenditure for buying dollars.
"As this is not the best change to be made during an economically tough period, and especially at a time of an extreme dollar shortage, this association calls on the MPL management to change this decision," the statement urged.
MPL previously required agents to pay fees in US dollars until 2011. However, due to changes made to the policy of the government at the time, MPL started charging boat fees in Dhivehi Rufiyaa. The practice remained unchanged since then.
