MDP seeks meeting with MMA Governor over worsening dollar shortage

The opposition MDP Parliamentary Group (PG) has requested a meeting with Maldives Monetary Authority (MMA) Governor Ahmed Munawar to clarify the central bank’s efforts to address the worsening dollar shortage in the country.

The request was made in a letter sent on Tuesday by MDP PG Secretary General and North Maafannu MP Mohamed Ibrahim (Kudu). In the letter, Kudu noted that although the Foreign Exchange Act came into force last year, systemic issues in its implementation have led to the expansion of an informal black market for foreign currency.

Kudu said the PG wished to meet the Governor at the earliest opportunity to discuss the challenges facing the public and the economy due to the shortage of dollars and the volatility of the black market rate.

One of the key concerns highlighted in the letter was the impact of the Bank of Maldives’ (BML) recently introduced dollar investment opportunity. Kudu said the scheme appeared to have affected the country’s exchange system and contributed to further instability in the black market rate.

The letter also sought clarification on the difficulties now faced by Maldivians studying abroad, those seeking overseas medical treatment, and the general public following reductions in card limits by BML and other banks. Kudu said these restrictions were creating significant hardship for people who rely on access to foreign currency for essential expenses.

He further noted that businesses were facing barriers in importing goods due to the extreme volatility of the black market rate, which has made it difficult to obtain dollars even at high prices. This, he said, was contributing to rising commodity prices and inflation.

Kudu also raised concerns about the independence of the central bank. Although the MMA Act grants the authority full discretion over monetary policy, he said recent key monetary decisions were being publicly announced by government politicians, raising questions about the credibility and autonomy of the institution.

The letter stated that the MDP PG wished to understand the central bank’s ongoing efforts to address the dollar crisis and discuss how Parliament could support and accelerate these measures. Kudu said the PG was ready to cooperate in any way necessary to help stabilise the economy and ease the difficulties faced by businesses and the public.

“As these issues are directly related to the public’s daily life and the economic stability of the country, I request you to schedule a time during the coming week for a meeting between you and the MDP Parliamentary Group,” the letter said.