Saeed on failure to reduce USD exchange rate: Better to question Nasheed and Solih

Minister of Economic Development and Trade Mohamed Saeed said on Tuesday that questions regarding the continued high exchange rate of the US dollar should be directed to former presidents Mohamed Nasheed and Ibrahim Mohamed Solih.

During a press conference held at the President's Office on Tuesday, Saeed was questioned about a remark he made in L. Maavah in 2024, assuring the government reduce the US dollar exchange, with the journalist asking whether the government was deliberately refraining from taking action to lower the exchange rate.

In response, Saeed said the central policy of President Dr. Mohamed Muizzu's administration is to break the country's debt cycle and build a credible and resilient economy. He argued that the previous administration under former president Solih had failed to achieve this objective and alleged that its policies had left the country in severe financial difficulty.

The Minister insisted that the remarks made in Maavah were consistent with that position. He also recalled that during Nasheed's tenure as Speaker of the 19th Parliament, he had publicly criticized the Solih administration, describing it as a failing government nearing collapse.

At the time, the Maldivian Democratic Party (MDP) was experiencing internal divisions, which eventually led Nasheed and his supporters to breakaway and form a new political party, The Democrats. They have since rejoined MDP.

"[While were in The Democrats, Nasheed and his supporters] argued that President Solih's administration needed to be replaced because of money printing, lack of transparency and widespread corruption. Those are serious allegations, and they should be asked to explain why they believe the country was pushed into financial ruin,” he refuted.

Saeed said Nasheed should be asked to explain why he had previously accused the Solih administration of widespread corruption and a lack of transparency, while Solih should respond to the concerns that were raised by Nasheed.

The Minister further argued that the previous administration had no valid justification for printing additional money, particularly given the substantial amount of foreign assistance the Maldives received during its tenure. Despite that support, he said, the government continued to increase the money supply.

While Saeed has repeatedly stated that the government would reduce the exchange rate of the US dollar, a concrete solution has yet to be achieved. The black market exchange rate has remained above MVR 20 for several months.

Former president Abdulla Yameen Abdul Gayoom, who is an economist by profession, said last Sunday that the existence of a black market for foreign currency is a clear indication of the government’s failure.

The current administration assumed office after pledging to resolve the country's foreign currency shortage and eliminate the black market. However, as it approaches its third year in office, the issue remains unresolved, with the public continuing to express concern over the shortage of US dollars. Citizens have also raised concerns about rising inflation and the increasing cost of living.