Nasheed: Maldives has run out of dollars; people having hard time affording even necessities

The Maldives has run out of US dollars and faces high inflation, giving ordinary people a hard time affording even basic necessities, says former Maldivian leader Mohamed Nasheed.

Nasheed, the chairperson of the main opposition Maldivian Democratic Party (MDP), made the remarks during a party rally on Wednesday night.

Addressing the rally, Nasheed said that President Dr. Mohamed Muizzu’s administration had failed to bring in dollars to the country, either through grants or loans, pushing up the dollar rate.

He accused the administration of failing to establish a substantial plan to repay the country’s massive debt, exhausting the state’s dollar reserves to repay over USD 1 billion so far this year.

“What will the Maldives have left? The Maldives has run out of dollars,” he said.

Nasheed said the higher dollar exchange rate was also fueling inflation.

He went on to share the market prices for some essential goods;

• Basmati rice (5kg): MVR 110
• Cooking oil (1l): MVR 35
• Olive oil (500ml): MVR 179
• Lentils (1kg): MVR 50
• Noodles: MVR 6
• Salt (1kg): MVR 6
• Tea bags: MVR 30
• Coffee: MVR 260
• White eggs: MVR 2.50
• Brown eggs: MVR 3

“The inflation in the Maldives is currently rising at a rate that the people of this country cannot bear,” he said.

Nasheed expressed concern that while the inflation rate continues to rise, the income of people remains the same.

The former Maldivian leader said the country was on a “dark trajectory”, and said the incumbent administration lacked any policy or vision to divert the country from its current route.

Nasheed also expressed concern over the congestion at the Male’ Commercial Port, forcing container ships to divert to Sri Lanka or Colombo. He said that businesses were wracking up demurrage and freight charges as they wait, which is also fueling inflation.

The World Bank projects that inflation in the Maldives will to jump to 6 percent this year, as the small island nation, almost entire dependent on imports, feels the effects of the conflict in the Middle East.