Economic Minister Mohamed Saeed has said that the Maldives Monetary Authority (MMA) must bear responsibility for the rising dollar rates on the black market and the hike in commodity prices, asserting that the central bank is the institution that must be held accountable.
Responding to a no-confidence motion submitted to Parliament by Kendhoo MP Mauroof Zakir, Saeed noted that he first consulted the law to address the allegations regarding the surge in black market exchange rates and the rising cost of living.
He emphasised that under the law, the responsibility for determining the foreign exchange rate and formulating and implementing related policies lies solely with the MMA.
"Section 24(a) of the Maldives Monetary Authority Act 1981 mandates the MMA to implement the exchange rate system and to determine and enforce policies regarding the exchange rate to manage the country's foreign exchange affairs," Saeed said.
"This is the legal framework without exception. Therefore, I believe those who raised these questions have every opportunity and access to direct their inquiries to the entity legally tasked with this responsibility."
Saeed made these remarks while addressing the first point raised in the no-confidence motion against him.
The motion, backed by the signatures of 13 opposition lawmakers, alleges that foreign currency rates have escalated because Saeed, in his capacity as Economic Minister, failed to effectively implement policies for economic reform.
The motion further claims that instead of addressing the rising dollar rates on the black market, Saeed attempted to downplay the severity of the issue by characterising the dollar shortage within the banking system as a natural occurrence.
Additionally, the opposition Maldivian Democratic Party (MDP) highlighted in the motion that Saeed had previously claimed that if the ruling People's National Congress (PNC) secured a parliamentary majority in the 2024 elections, the dollar rate would be brought down below MVR 15.42.
Responding to these points, Saeed maintained that the current administration is managing the economy far more effectively than its predecessors.
