Gov’t Unveils Strategies to Fortify Maldivian Rufiyaa Against US Dollar Influence

Minister of Economic Development and Trade Mohamed Saeed, disclosed a series of initiatives aimed at securing the value of the Maldivian Rufiyaa in relation to the US Dollar.

Addressing attendees at a ceremony convened to formalise the Memorandum of Understanding between the Maldivian government and Dubai’s International Freezone Authority (IFZA), concerning the development of the special economic and financial services zone earmarked for Fonadhoo and the Maldives economic gateway intended for Ihavandhippolhu, Minister Saeed outlined the potential of the project to address prevailing challenges in the Maldivian foreign exchange market.

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Minister Saeed highlighted collaborative efforts with foreign partners, emphasising engagements with key markets such as China and India, in a bid to elevate the value of the Maldivian Rufiyaa vis-à-vis the US Dollar.

Expressing optimism for tangible outcomes within the next five years, Minister Saeed conveyed confidence that these enhancements would positively impact local enterprises and garner pride among citizens.

The current administration’s commitment to bolstering the Maldivian economy amidst what they describe as a delicate state is underscored by various measures, including the cessation of new banknote printing.

President Dr. Mohamed Muizzu previously attributed the maintenance of the Maldivian Rufiyaa’s value to this measure, citing its role in stabilising the US Dollar rate.

In response to economic challenges exacerbated by the COVID-19 pandemic, the previous administration suspended articles of the Fiscal Responsibility Act in April 2020, authorising the printing of new banknotes. This suspension was subsequently extended twice, permitting the issuance of up to MVR 4.4 billion.

Despite the Maldives Monetary Authority (MMA) setting the conversion rate at MVR 15.45, acquiring US Dollars at this rate remains unfeasible at present.