The opposition Maldivian Democratic Party (MDP) Chairperson and former President Mohamed Nasheed said today that there has been no relief from the ongoing dollar shortage and that the exchange rate continues to climb.
In a post on X, Nasheed highlighted that private businesses are struggling to import goods as they are unable to process Telegraphic Transfers (TTs) due to the scarcity of foreign currency.
"There is no solution in sight for the US dollar shortage. The rate is rising. Private businesses are unable to issue TTs or import goods," Nasheed said.
Nasheed noted that the government had estimated an additional $160 million in revenue by mandating resorts to convert 40 percent of their foreign currency earnings and by introducing taxes on foreign tour operators.
However, pointing out that the government's projections have not been realised, Nasheed emphasised that the resulting hardships are being borne by the general public.
As part of efforts to resolve the dollar crisis, the government has tightened enforcement and increased the mandatory conversion requirement to 40 percent of total revenue for resorts and businesses earning more than $25 million annually.
The government maintains that these measures will increase the flow of dollars into the banking system, thereby addressing the shortage and the issue of businesses having to purchase foreign currency at inflated black-market rates.
