Two years after promising that the dollar exchange rate would drop once the ruling People’s National Congress (PNC) secured a parliamentary majority, Economic Minister Mohamed Saeed has attributed the continued surge in rates to the previous two administrations led by the Maldivian Democratic Party (MDP).
During today’s parliamentary session, Vaikaradhoo MP Hussain Ziyad questioned the minister on the issue. In response, Saeed asserted that the failure to stabilize the dollar was a direct consequence of the policies enacted by the two MDP governments.
"The previous government suspended the law and continued to print money. I warned then that we would face the consequences today. We also saw the introduction of the 10 to 15 Rufiyaa exchange rate band during President Nasheed’s administration. The people are still struggling to escape the fallout of those decisions," Saeed said.
Saeed avoided the question, stating instead that the Bank of Maldives (BML) and the central bank were already disclosing such information.
"The CEO of the Bank of Maldives provides answers in various forums every week, and the central bank is also consistently sharing information regarding this," he noted.
The issue was further pressed by Maradhoo MP Ahmed Didi, who asked whether the minister’s campaign pledge in Laamu Maavashu two years ago—claiming a parliamentary majority would lower the dollar rate—was based on any formal research.
Saeed responded by describing the PNC’s parliamentary majority as a great blessing, claiming that the country would have otherwise faced bankruptcy. He refrained from answering the question, instead repeating criticisms of the previous administration that he has maintained over the past two and a half years.
Despite his current rhetoric, Saeed had explicitly stated during the parliamentary campaign in Laamu Maavashu that the dollar rate would be brought down below the official peg of MVR 15.42.
However, the dollar has remained at record highs on the black market for several months without showing signs of decline. Current market rates show the dollar trading at over MVR 20.50.
