Economic Minister Mohamed Saeed could not explain why the dollar rate could not be lowered despite the government securing a parliamentary majority.
During the parliamentary election campaign, Saeed claimed that the rate can be lowered to MVR 15.42 per dollar if the government wins a majority.
"It's great that we won a supermajority. We can now pay the sukuk without worrying. And for what governments have done for the people in the past, I am not criticising any government, but there are more progressive things coming. For instance, the vape ban, the generational ban on smoking, ATM in all the islands, more new airports, ferry network in more atolls," he said today (March 3) when questioned about his previous claim.
He made the claim during a parliamentary election campaign event in Laamu Maavah island with President Mohamed Muizzu.
"Even if we just get a majority in parliament, the Maldivian Rufiyaa will strengthen by 30-40 percent against the dollar. What will be the result? The dollar will fall below MVR 15.42 in the future," Saeed said.
The people gave the ruling People's National Congress (PNC) a supermajority in the election. The PNC won 75 of the 93 seats in the parliament. The opposition Maldivian Democratic Party (MDP) won only 12 seats.
Recent developments indicate that the government intends to float the dollar rate. This is expected to devalue the Maldivian Rufiyaa further, but experts believe that it will reveal the real value of the dollar and the real strength of the economy.
Food prices have been rising due to the dollar shortage. Statistics prove that inflation rose to a 13-year high in 2025.
This year, the Maldives has to pay a record USD 1 billion in external debt. The largest amount is for a USD 500 million sukuk. The government is also trying to get more loans at a very high interest rate to pay off the huge debt.
