In recent years, the Maldives has been making strides towards de-dollarising its economy and promoting the use of its own currency, the Maldivian rufiyaa. However, these efforts seem to have lost momentum in recent months, raising concerns about the country’s economic stability and independence.

According to reports, the Maldives’ central bank has scaled back its de-dollarisation efforts in the face of economic challenges and the impact of the COVID-19 pandemic. The country’s tourism industry, which accounts for a significant portion of its economy, has been hit hard by the pandemic, leading to a decrease in foreign exchange inflows and a greater reliance on US dollars.

This has led some experts to raise concerns about the country’s vulnerability to external economic shocks and the need for greater financial independence. The de-dollarization of the economy was seen as a way to mitigate these risks and promote greater financial inclusion, but its importance seems to have faded away slowly.

The Maldives’ small size and limited financial resources make it difficult to compete with larger economies in the region. However, the country’s efforts to promote the use of the rufiyaa and reduce its reliance on the US dollar were seen as important steps towards greater economic independence and stability.

Despite the challenges, it is important for the Maldives to continue its de-dollarization efforts in order to promote a more diversified and independent financial system. This will require greater investment in financial infrastructure and regulatory frameworks, as well as a concerted effort to promote the use of the rufiyaa in all sectors of the economy.

While the Maldives’ de-dollarisation efforts may have lost some momentum in recent months, their importance cannot be overstated. As the country continues to grapple with economic challenges and external shocks, it will be crucial to maintain a focus on promoting greater financial independence and stability.