News Desk
Rumors circulating that Bank of Maldives (BML) is planning to hike the official dollar exchange rate to MVR 25 are completely false and politically motivated, Economic Development and Trade Minister Mohamed Saeed said last night.
Speaking on the Two Sides of the Economy program, Saeed pushed back against claims that the economy is spiraling, calling the exchange rate rumors fake news designed to crash the market and stir up panic.
“Changing the official exchange rate falls solely under the authority of the Maldives Monetary Authority (MMA). BML cannot do that, and the government has no intention of making such a decision either,” Saeed said.
While the official peg remains at MVR 15.42 per dollar, black market rates have surged past MVR 22—climbing steadily from MVR 17 over the past two and a half years to hit historic highs.
Saeed blamed the former administration’s decision to print MVR 8 billion for driving up the black market rate. He said flooding the system with local currency created a massive mismatch between available Rufiyaa and incoming dollar revenues, devaluing the local currency.
However, the minister insisted the current government has stabilized the situation by stopping the money printer, even while paying off heavy debts and funding key projects.
“Whoever is intentionally pushing up dollar rates on the black market, I urge you to stop,” Saeed said. “The government is working to improve things for the benefit of the public. If tourism holds strong, the market will settle down step by step.”
Saeed added that if the economy were truly in dire straits, foreign investors would not be moving forward with $10 billion worth of industrial projects in the Maldives.
