Dollar Depreciation Linked to Project Halts, Says Yameen

Former President Abdulla Yameen addressed the depreciation of the dollar against the Maldivian Rufiyaa (MVR), attributing it not to governmental actions but to the suspension of projects and a decreased demand for the dollar. 

Yameen’s remarks come in response to assertions by some government officials linking the rise in the dollar’s value above MVR 18 in the black market to the government’s economic policies. 

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Yameen highlighted that both ongoing projects initiated by the current administration and those from previous governments have come to a halt, leading to a reduction in demand for the dollar and consequently facilitating its availability. “With the cessation of major government projects, there’s been a significant decrease in the need for dollars, resulting in easier access for importers,” he stated, elucidating the dynamics driving the currency fluctuations.

He elaborated, “The suspension of these projects means there’s less pressure on the Maldives Monetary Authority (MMA) and other financial institutions to secure funds for government ventures.” 

Yameen underscored that this influx of dollars has mitigated potential price hikes, as importers can acquire the currency more readily due to the halting of major projects.

Yameen emphasised that the depreciation of the dollar cannot be solely attributed to the economic measures implemented by the government. “The improvement in dollar inflows is not a natural or sustainable economic trend; rather, it’s a temporary, artificially created situation,” he asserted.

Economic Minister Mohamed Saeed took to social media to announce the government’s recovery from the economic challenges inherited last November and touted containment of the dollar’s value, crediting Muizzu’s guidance and the robust measures undertaken by the administration.