Solih Unveils Strategy to Reduce Dollar Exchange Rate Ahead of Presidential Election

MV+ News Desk | September 28, 2023
Photo: MDP

President Ibrahim Mohamed Solih, the presidential candidate of the Maldives Democratic Party (MDP), unveiled a strategy aimed at reducing the exchange rate of the dollar to MVR15 per dollar, at a rally in Addu City, yesterday, ahead of the second round of the presidential election.

Solih asserted that this could be achieved by ensuring that 30% of incoming dollars remain within the Maldives.

In his address, Solih laid out an approach to tackle this challenge, which includes a transition towards de-dollarization for all domestic and business transactions, encouraging the use of the Maldivian Rufiyaa. 

This shift, he explained, would incentivise businesses earning dollars to engage in dollar marketing activities while allowing the public to accumulate dollar reserves in local banks.

An element of Solih’s strategy involves compelling businesses to retain a specific percentage of their dollar earnings in a Maldivian bank for a predetermined period. He noted that discussions with businesses were already underway, with progress towards reaching a consensus to retain 30% of dollar income within the Maldives.

Solih pledged that if re-elected for a second term, he would swiftly implement one of these policies within the first year of his tenure. He asserted that such measures would effectively address the challenge of dollar stagnation, foreseeing that if 30% of the country’s dollar income remains within the Maldives, it would lead to a reduction in the dollar exchange rate to below MVR 15.

Additionally, the President expressed optimism about the country’s economic outlook, projecting substantial growth from MVR 82 billion to MVR 170 billion over the next five years, resulting in more than USD 6 billion in revenue.

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