MMA governor criticized for silence as black market USD rate climbs to MVR 20

MDA’s Velidhoo MP Mohamed Abbas has criticized silence by central bank, Maldives Monetary Authority (MMA)’s governor Ahmed Munawar while the US dollar rate in the black market climbed to MVR 20.

While debating on government-backed ‘Maldives Intellectual Property Office’ bill submitted by ruling PNC’s Kudahuvadhoo MP Hussain Hameed during Tuesday’s parliamentary sitting – Abbas argued that the country’s current economic state is unsuited to set up such an office. He added that regardless of the laws passed, their full potential can only be realized by improving the country’s economic condition.

Abbas strongly critiqued MMA’s governor Munawar’s silence while the US dollar rate in the black market climbed to MVR 20.

“The US dollar rate has risen to MVR 20 today. Akk this time, honorable Speaker, our MMA Governor has stayed silent,” he said.

Abbas underscored that the increase of the US dollar rate to MVR 20 in the black market will cause inflation rate to rise. This, he said, will be reflected on living expenses such as electricity bills and water bills, which will continue to rise day by day. He questioned how the living conditions of the public could possibly improve under these circumstances.

The official bank rate for US dollars in the Maldives is set at MVR 15.42. However, due to the unavailability of an adequate supply of dollars from the bank, the public is forced to opt for the black market, even to acquire US dollars for essential needs.

The US dollar rate in the black market rose to MVR 20 three days ago. The surge followed several days of fluctuation above MVR 19. Specifically, the US dollar rate ranged between MVR 19 and MVR 19.50 at the end of last month, before increasing to between MVR 19.50 and MVR 19.80 at the beginning of this month.

Former president Abdulla Yameen Abdul Gayyoom has remarked that the US dollar rate climbed to MVR 20 due to the incompetence of MMA’s governor Munawar, who had served as the finance minister during his administration.

The rise in the US dollar rate would significantly affect the lives of Maldivian citizens, as the country is heavily dependent on imports for even the most basic necessities. As a result, sourcing US dollars from the black market to import these essential goods would lead to a rise in their prices.

An increase in the prices of goods, without a corresponding rise in salaries and income, would reduce consumer spending—ultimately having a negative impact on businesses.

According to recent statistics released by the Finance Ministry, business profit tax collected by the state has decreased by MVR 680 million this year.

Since the current administration took office, the best US dollar rate was recorded in February of last year. At the time, speaking to the press in Dubai, Economic Minister Mohamed Saeed stated that the government aimed to resolve the US dollar shortage in the Maldives within the following four months or so.

Later, President Dr. Mohamed Muizzu reaffirmed that the US dollar rate would not rise further and would continue to decline. However, this has not been achieved to date.

In April, President Muizzu stated that the US dollar shortage in the Maldives would be resolved and the exchange rate would be brought down to the official bank rate before the end of 2027.

However, US dollar rate continues to climb day by day.