As the US dollar hits record highs on the Maldivian black market, the opposition Maldivian Democratic Party (MDP) Chairperson and former President Mohamed Nasheed has issued a formal demand to President Mohamed Muizzu to bring the exchange rate down to MVR 19 within the next 10 days.
Speaking at a press conference held today at the MDP office, Nasheed said that the solutions to the dollar crisis are clearly outlined in economic principles. He expressed confidence that an MDP administration would be capable of stabilizing the rate at that level.
"We are presenting a proposal and making a demand through this protest. We are calling for the dollar rate to be lowered to MVR 19 within the next 10 days, and to MVR 17 within one month. MVR 17 was the rate when this administration took office in November 2023," Nasheed said.
Nasheed, who also served as the Speaker of the 19th Parliament, noted that the central bank would be aware of the volume of liquidity required to be injected into the market to bring the rate down to MVR 19 within a week. He further highlighted that the dollar shortage is directly impacting the price of essential goods.
At the beginning of this week, the black market rate for the US dollar surged to MVR 22. Currently, a dollar is trading at rates exceeding MVR 20.25. As the value of the dollar continues its unchecked ascent, businesses and individuals are facing increasing difficulties in sourcing foreign currency.
The official exchange rate set by the central bank, the Maldives Monetary Authority (MMA), remains at MVR 15.42. Based on current black market prices, the rate has spiked by MVR 6.83 above the official peg—a premium of 44.29 percent.
Economic experts attribute this sharp rise to the difficulty in obtaining foreign currency through the formal banking system for imports. Additionally, the state's foreign debt obligations have intensified the demand for dollars, further fueling the black market.
The loss of control over the exchange rate has led to a rapid increase in the cost of goods and services across the market. This has resulted in a higher cost of living for the general public and created major economic challenges.
Real-time updates on exchange rate fluctuations can be monitored via the Adhadhu Dollar Tracker.
