Yameen: Creation of USD black market linked to government failure

It is the failure of the government that leads to the creation of US dollar black markets in a country, says former President Abdulla Yameen Abdul Gayoom.

Speaking at a People’s National Front (PNF) townhall meeting on Sunday night, Yameen criticized remarks by chief government spokesperson Mohamed Hussain Shareef (Mundhu), who recently said that the USD black market in the country has nothing to do with the government.

“If he said this, then that is out of ignorance. It is the failure of the government that leads to creation of dollar black market,” he said.

Yameen said that maintaining the foreign exchange rate is one of the key legal responsibilities of the Maldives Monetary Authority (MMA).

He said that the central bank should be focusing on that, rather than getting involved in politics.

The remarks come as the USD exchange rate remains above MVR 21 in the black market.

President Dr. Mohamed Muizzu had pledged to resolve the USD crisis and bring an end to the dollar black market when he took office in 2023. However, the issues continue to persist, nearly three years into office.

The foreign exchange woes have been linked to a rise in inflation, with sharp rises in price of food and other necessities.