MMA to introduce new instrument to tackle foreign currency shortage

Dr. Fazeel Najeeb, Governor of the Maldives Monetary Authority (MMA) has said that the national Central Bank would soon introduce a new instrument to tackle the issue foreign currency shortage in the Maldives.

Speaking at a ceremony today held at MMA to introduce the new prints of 5 Laari and 10 Laari coins, Dr. Fazeel said that the issue of foreign currency shortage is becoming more and more serious as the month of Ramadan approaches, and that the main cause is an excess of local currency circulating in the economy. He said that an additional instrument would be introduced within the coming two weeks.

“We hope that the new instrument about to be introduced would provide a solution at least until the next tourism season comes along”, said Dr. Fazeel.

Dr. Fazeel said that the Central Bank has always intervened in the foreign currency market in the Maldives, and that it sells foreign currency to local banks every week. He also said that the Maldives need to set long term policies to attain sustainable economic development.

Dr. Fazeel noted the importance of economic diversity, and said that the country cannot expect to attain a sustainable economy while depending on the tourism industry alone. He said that the Maldives need to develop other industries, and minimize State involvement in economic ventures and give way to private businesses.

“The government’s excessive involvement in the economy has caused Maldivian currency to flow into the economy to an extraordinarily higher level, and as we increase import, the value of Rufiyaa is adversely affected”, said Dr. Fazeel.