President defends FX reforms, saying policies are research-based and results will follow

The government's measures to resolve the dollar issue are being taken after research and will produce good results, President Dr. Mohamed Muizzu said on Wednesday evening.

Speaking on the 'Nation Chat' program broadcast by state media on Wednesday evening, the President said the changes in foreign exchange policies would bring good progress.

The President said the government is addressing long-standing issues in the dollar system, including black-market practices that have contributed to economic vulnerabilities. He said changing the long-standing practice of foreign workers sending dollars out of the country will take time, but the necessary steps to improve the situation will be taken in an orderly manner.

The measures will resolve the dollar issue in the coming days, he said, adding that this is everyone's country and the issue will be resolved with consultation.

“We are going forward with consultations from all sides. The measures we take, whether we make a law or amend a law, are fact based. We don't just do anything suddenly. Many days of discussions, technical evaluations, studies and of how these things are done abroad are all looked at by our teams,” President Dr Mohamed Muizzu said.

The President said the people in charge of this government are good people in terms of education, technical and experience. He said the reforms are guided by teams of technicians, engineers, economists, and specialists, and not driven by political motives.

Therefore, these amendments are being proposed in a very good manner, he said.

“We will look at all this in the foreign exchange reforms. I certainly don't think there is a government that has implemented policies to expand the economy more than us”, President Dr Mohamed Muizzu said.

The President also defended the Tilamale' Bridge project, saying it is a national necessity and part of a long-term development plan. He said the bridge will improve connectivity between Male', Hulhumale', and Vilimale', and dismissed claims that the project is politically motivated.

He further said the government is working to strengthen scientific, engineering, and technical education, arguing that modernising the economy requires investment in skilled professionals.

Central bank, Maldives Monetary Authority (MMA) Governor Ahmed Munawwar said on Monday that he would propose an amendment to the Foreign Exchange Act to require 40 percent of the dollar revenue received by resorts to be deposited in Maldivian banks.

The Maldives Association of Tourism Industry (MATI) has expressed concern that 40 percent of the dollar revenue should be paid to Maldivian banks.

However, the Parliament passed the Foreign Exchange Bill on Wednesday requiring resorts to deposit 40 percent of their dollar income with banks. The bill, moved by Holhudhoo MP Abdul Sattar Mohamed, initially required resorts to pay 20 percent of their revenue at USD 500 per tourist.

However, after the committee finalized the bill and sent it to the Parliament, it was sent back to the committee for further amendments.