The main opposition Maldivian Democratic Party (MDP) parliamentary group has formally requested a meeting with the Governor of the Maldives Monetary Authority (MMA) over mounting concerns about the country’s worsening dollar shortage and the growing influence of the black market.
In a letter addressed to the MMA Governor, the MDP parliamentary group highlighted the adverse effects of the Foreign Exchange Act, which came into force on 1 Jan. The letter, signed by North Galolhu MP Mohamed Ibrahim, who also serves as the group’s secretary general, alleged that the law has not been implemented fairly and has effectively formalised a black market for US dollars.
The group warned that the current foreign currency crisis could force businesses to suspend operations due to difficulties accessing dollars through official channels. The MDP also raised concern over frequent and abrupt regulatory changes, which it said were making it harder for the public to meet dollar needs for travel and overseas living expenses.
“Traders are being forced to halt imports due to a shortage of dollars, driving up the prices of essential goods and resulting in shortages of basic commodities,” the letter stated.
The MDP has requested a meeting with the central bank governor to discuss the escalating situation and explore potential solutions to ease the pressure on businesses and consumers.
The letter follows reports that the US dollar rate on the black market hit a new peak of MVR 20.20 this week, surpassing the highest level recorded during the COVID-19 pandemic in 2020. The official exchange rate, set by the MMA at MVR 15.42 per dollar and allowed to fluctuate within an authorised band, contrasts sharply with the black market rate, which analysts say reflects strong demand for dollars clashing with limited availability.
Critics have pointed to a recent regulation requiring resorts and guesthouses to convert 20 percent of their foreign currency earnings into Maldivian Rufiyaa as a major factor behind the crisis. Although the policy is designed to improve dollar liquidity in the formal banking system, opposition leaders argue that it mainly benefits state-owned companies and the government, while putting private businesses at a disadvantage.
Despite assurances from President Mohamed Muizzu and Economic Minister Mohamed Saeed that the exchange rate would stabilise, the black market continues to signal worsening imbalances, raising fears of inflation and further strain on private businesses.