Former President and Chairperson of the opposition Maldivian Democratic Party (MDP), Mohamed Nasheed, has said that the rising exchange rate of the US dollar is not caused by public discourse, but rather by a genuine shortage of the currency.
Nasheed made these remarks in response to Economic Minister Mohamed Saeed, who claimed during a program on PSM last night that the dollar rate was climbing because two news outlets were publishing headlines about the currency's appreciation.
In a post on X today, Nasheed characterized the government’s claim—that speculation is driving the rate hike—as a deception and the greatest disservice that could be done to the economy at this juncture.
"It is a grave injustice to the Maldivian economy for the government to distort reality by claiming the dollar price is rising due to people talking about it [speculation]. The price of the dollar is rising because there is no dollar," Nasheed said.
Nasheed further alleged that the government is working extensively to obscure the country's economic reality. He noted that this is the reason why mandatory financial reports are currently not being published.
"The government can only hide the truth for so long by withholding regular reports from the MMA (Maldives Monetary Authority) and the Finance Ministry. The MMA knows exactly how much foreign exchange is in the country and the level of demand. They are well aware of the money supply and the rate at which the Rufiyaa is chasing the Dollar; that is the true exchange rate," he said.
Nasheed emphasized that the government must consult with the MDP regarding the ongoing economic crisis. He warned that if the administration prioritizes pride over dialogue with the opposition, the Maldivian people will bear the consequences.
"To prevent the dollar from exceeding MVR 23, triggering hyperinflation and an astronomical rise in the cost of living, it is essential for the government to engage with the MDP. If the government chooses arrogance, the damage will be felt by the country and its citizens," Nasheed added.
Speaking on PSM last night, Minister Saeed had accused certain news outlets of reporting on the dollar rate with the deliberate intention of damaging the economy.
"Is this responsible? This is not how things should work in any country. Is it a healthy democracy to deliberately report in the news that the dollar rate is 24 Rufiyaa just to destroy an economy?" Saeed questioned.
Saeed argued that media coverage of black market rates is intended to create public panic. He labeled such reports as "fake news," describing it as a tactic used in some Western democracies.
"Fake news is being spread to divide society and crash the market for political ambition. In such a small economy, the brunt of such actions is significant. What benefit is there in reporting news this way?" Saeed asked.
