Economic Minister Mohamed Saeed has defended the rising costs of the dollar and essential goods, asserting that the current administration is managing the economy far more effectively than its predecessors.
Responding to a no-confidence motion submitted to Parliament by Kendhoo MP Mauroof Zakir, Saeed addressed the dollar appreciation issue by highlighting that the volume of foreign currency issued to the public at the official rate has increased since the current government took office.
Saeed noted that during the final three years of the previous MDP administration, Bank of Maldives (BML) released $1.75 million to the public at the official rate for various purposes. In contrast, he stated that $1.9 billion has been released to meet the diverse needs of the general public during the current administration's tenure so far.
"This represents an 80 percent increase. Honourable Speaker, this 80 percent increase occurred within three years; when averaged out, it is a monthly increase of 97 percent—nearly a 100 percent doubling. So, which administration actually provided dollars to the people at the official rate?" Saeed questioned.
He attributed the increase in dollar availability at bank rates to policy shifts designed to boost state foreign exchange inflows. He pointed to the amendment requiring resorts to exchange 20 percent of their dollar revenue and the decision to increase that requirement to 40 percent.
Saeed further noted that these policy changes were implemented while the global landscape was destabilised by international conflicts.
"Honourable Speaker, despite the global situation and the dire economic outlook inherited from the MDP, we have saved this nation from insolvency. Even amidst the challenges facing businesses and the public, we have achieved a 100 percent improvement," Saeed said.
Addressing the rising cost of goods, Saeed explained that difficulties in clearing imports stem from the limited capacity of the Malé Commercial Harbour. He claimed that no previous government had taken steps to expand the port, a project he said is now being undertaken by the current administration.
Additionally, Saeed highlighted that in response to global price volatility linked to the conflict involving Iran, the government has decided to increase the strategic reserves of food items designated as essential commodities to maintain price stability.
