Economic Minister Mohamed Saeed has stated that the Maldives Monetary Authority (MMA) bears responsibility for foreign exchange rate policy.
Responding to a no-confidence motion in the People’s Majlis, Saeed said he had reviewed the relevant law and found that the MMA is mandated under the Maldives Monetary Authority Act to implement the exchange rate system and determine related policies.
He told lawmakers that questions about rising black-market dollar rates and the cost of living should be directed to the institution legally tasked with managing the country’s foreign exchange affairs.
The motion, supported by 13 opposition members, alleges that rates have risen because the Economic Minister failed to implement effective economic reforms.
Saeed also presented figures showing that the current administration has issued more US dollars at the official rate than the previous government. He said USD 1.9 billion has been released at the official rate during the first three years of the present administration, compared with USD 1.75 billion in the final three years of the previous administration.
The official exchange rate remains pegged at MVR 15.42. Black-market rates have traded at a significant premium in recent months.
