Gov’t Blaming Dollar Rise on Speculation is ‘Distortion of Reality’, Says Nasheed

Former President and opposition Maldivian Democratic Party (MDP) Chairperson Mohamed Nasheed has rejected the government’s claim that speculation is driving the rising US dollar rate, saying the increase is instead caused by a shortage of foreign currency.

Nasheed said the government’s claim that the dollar’s price is rising due to speculation is “a distortion of reality and the biggest harm that can be done to the Maldivian economy right now”.

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He said the government could only conceal the extent of the foreign currency shortage for so long by failing to publish reports that the Maldives Monetary Authority (MMA) and the Ministry of Finance are required to release regularly.

According to Nasheed, the MMA has information on both the amount of US dollars available in the Maldives and the demand for the currency. He said the real exchange rate is determined by the amount of rufiyaa in circulation and the rate at which rufiyaa is being exchanged for US dollars.

USD ge agu mahchah dhanee meehun dollaruge vaahaka dhahkaathee kamah (speculation) ge sabun kamah sarukaarun bune’, haqeeqaiy olhuvaalumakee mi vaguthu Dhivehi iqthisoadhah dheveyne enme bodu dhera. Dollaruge agu mahchah dhanee Dollar netheema. MMA aai Finance ministry in…— Mohamed Nasheed (@MohamedNasheed) August 11, 2026

Nasheed’s remarks came after Economic Minister Mohamed Saeed acknowledged the existence of a dollar black market but claimed that headlines published by some news outlets were contributing to increases in the unofficial exchange rate.

Saeed had described reports stating the day’s black-market dollar rate as attempts to create panic, spread what he called “fake news” and manipulate the market.

Nasheed warned that the government needs to engage with the MDP before the dollar rate exceeds MVR 23, which he said could trigger hyperinflation and significantly increase the cost of goods.

He called on the government to prioritise addressing the foreign currency shortage rather than political pride, warning that failure to do so would ultimately harm the Maldivian people.

The unofficial exchange rate has reached a record level today as the USD black-market rate tracking platforms currently show the dollar trading at around MVR 22.23, significantly above the official selling rate of MVR 15.42 set by the Maldives Monetary Authority (MMA).