Former Finance Minister Ibrahim Ameer has stated that the dollar rate is rising in the black market due to the government's recent changes to its dollar policy.
During a news conference held by the opposition Maldivian Democratic Party (MDP) today, Ameer expressed concern that an increase in demand for dollars from the government and government-owned companies would lead to a reduction in the amount allocated to private businesses. This, he warned, would exacerbate the situation in the black market.
Ameer noted that while the Maldives' tourism industry has shown improvement this year compared to previous years, the dollar's exchange rate has remained elevated throughout 2024. He indicated that the exchange rate was between MVR 17.50 and 18 in 2022 and between MVR 17 and 17.50 in 2023. However, he predicted that in 2024, the rate would rise to between MVR 18 and 18.64.
Ameer also highlighted that one of the government's key initiatives involved depositing money in dollars into the Sovereign Development Fund (SDF). He noted that as of August, $65 million had been deposited, but currently, only $18 million remains in the fund.
Ameer explained that the government has now used the dollars in the SDF, leaving only $18 million in the fund. He stated that the SDF was used to pay debts to HDC and STOC.
He concluded that he does not believe the dollar rate can be lowered unless there is an improvement in bank intervention policies and a commitment to allocate all available dollars to banks.
During a news conference held by the opposition Maldivian Democratic Party (MDP) today, Ameer expressed concern that an increase in demand for dollars from the government and government-owned companies would lead to a reduction in the amount allocated to private businesses. This, he warned, would exacerbate the situation in the black market.
Ameer noted that while the Maldives' tourism industry has shown improvement this year compared to previous years, the dollar's exchange rate has remained elevated throughout 2024. He indicated that the exchange rate was between MVR 17.50 and 18 in 2022 and between MVR 17 and 17.50 in 2023. However, he predicted that in 2024, the rate would rise to between MVR 18 and 18.64.
Ameer also highlighted that one of the government's key initiatives involved depositing money in dollars into the Sovereign Development Fund (SDF). He noted that as of August, $65 million had been deposited, but currently, only $18 million remains in the fund.
Ameer explained that the government has now used the dollars in the SDF, leaving only $18 million in the fund. He stated that the SDF was used to pay debts to HDC and STOC.
He concluded that he does not believe the dollar rate can be lowered unless there is an improvement in bank intervention policies and a commitment to allocate all available dollars to banks.
