President Dr Mohamed Muizzu has defended the government’s measures to address the country’s foreign currency shortage, saying the policies are based on research, technical assessments and consultations.
Speaking on PSM’s Nation Chat Programme, President Muizzu said the government is working to strengthen the Maldivian economy while addressing the ongoing shortage of US dollars.
He said the government is introducing new policies to tackle the foreign exchange crisis while also enforcing existing laws that were previously not being implemented effectively.
Acknowledging criticism of the measures, President Muizzu said some political figures may be opposing the reforms for political reasons. However, he said the public generally understands the need for the measures and recognises their importance in addressing the country’s economic and foreign currency challenges.
The President assured that the government would not introduce policies that could negatively affect economic growth. He said the measures were developed based on facts, following consultations, technical evaluations and detailed studies, and are expected to produce positive results.
Meanwhile, the Maldives Monetary Authority (MMA) is working to strengthen the domestic banking sector and increase the circulation of foreign currency through local banks.
As part of the reforms, the Foreign Exchange Act is being amended to require businesses earning foreign currency, including resorts and guesthouses, to deposit 40 percent of their foreign exchange earnings into local banks each month.
The government says the measures are intended to increase the availability of foreign currency within the domestic banking system and strengthen the country’s overall foreign exchange position.
