Former President Mohamed Nasheed has said that all policies implemented by the government to secure dollar inflows have failed, leading to a continuous rise in the value of the US dollar.
In a post on X, Nasheed highlighted that the inability to exchange Maldivian Rufiyaa for dollars has caused immense hardship for businessmen, students, and families living abroad.
"The price of USD continues to climb. Despite having MVR in their accounts, people are unable to convert it to USD. Families living overseas with children in school and many business owners are facing extreme difficulties. The government's policies to acquire USD have failed," Nasheed said.
Noting that the Maldives avoided bankruptcy this month only because India rolled over a 30-billion-rupee currency swap, Nasheed remarked that President Mohamed Muizzu is nevertheless preparing for a visit to Pakistan.
To address the dollar shortage, the government has tightened enforcement measures and increased the mandatory foreign currency 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 resolving the foreign exchange scarcity and the issue of purchasing dollars at inflated rates.
However, despite amendments to foreign exchange regulations prohibiting the reporting of unofficial exchange rates and the sale of dollars above the official rate, many continue to express concern that the black market trade of dollars at high prices remains unchecked.
