Nasheed Says Dollar Shortage Persists as Businesses Struggle With Foreign Currency
Former President Mohamed Nasheed at the launching ceremony for the first books published by the MNU Book Grant on 11 October, 2022 | Photo: Maldives National University
Former President Mohamed Nasheed has criticised the government over the ongoing shortage of US dollars, stating that the situation continues to deteriorate and impact both businesses and the general public.
In a post on X, Nasheed stated that there has been “no relief” from the foreign exchange crunch and noted that the parallel market exchange rate continues to rise.
US dollar ge dhathi kamah kudaves hahleh naadhey. Agu dhanee mahchah. Amihla viyafaari thakah TT nuhedhi, thakethi import nukurevifa. Sarukaarun unmeedhu kuree September nimey iru 40% maaru kuran majboor kurumaai adhi beyruge tour operators athun GST ah majboor kurumun 160…
— Mohamed Nasheed (@MohamedNasheed) September 30, 2026
He highlighted that private businesses are currently unable to execute telegraphic transfers (TTs), leaving them unable to import essential goods.
Nasheed also called out the government’s failed revenue expectations, noting that it had anticipated generating USD 160 million by the end of September through two key measures: enforcing a mandatory 40 per cent dollar conversion rule and requiring foreign tour operators to pay Tourism Goods and Services Tax (TGST) in US dollars.
According to Nasheed, the measures had not provided the expected relief from the dollar shortage. “It is the public that continues to suffer,” he said.
However, the statutory timelines established under recent legislative amendments extend beyond September.
Under the First Amendment to the Foreign Currency Act, businesses are required to convert foreign earnings on a monthly basis by the 28th day of the following month. As a result, the first deadline for converting September earnings falls on October 28, 2026.
Meanwhile, the Eighth Amendment to the Goods and Services Tax Act, which applies a 17 per cent TGST rate to offshore supplies of inbound tourism products under the destination principle, takes effect on October 1, 2026. The initial USD-denominated tax filings and payments to the Maldives Inland Revenue Authority are due on November 28, 2026.
