Dollar Distribution at Official Rate Has Increased Significantly Compared to Previous Administration: Minister Saeed

Economic Development, Transport and Trade Minister Mohamed Saeed has said the amount of US dollars being distributed to individuals and businesses through the formal banking system at the official exchange rate has increased substantially compared to the previous MDP administration.

Speaking in a video shared on social media, Saeed said misinformation that undermines confidence in the Maldivian economy would not benefit the country, while highlighting government statistics that he said demonstrate improvements in the availability of foreign currency through the banking system.

Increased access to dollars

According to Saeed, the average monthly value of US dollar transactions through bank cards has increased from USD 10 million in 2021 to USD 39 million currently.

He also said monthly dollar allocations for importers conducting Telegraphic Transfers (TTs) have risen from USD 6.7 million in 2021 to USD 26.6 million.

“During the MDP administration, only about five percent of imports were facilitated through the banks. Today, we are processing TTs for between 30 and 40 percent of imports,” Saeed said.

More dollars for education and healthcare

The minister said access to foreign currency for Maldivians studying overseas has also increased significantly.

He said banks provided approximately USD 1.9 million per month for education-related expenses in 2021, compared with USD 4 million currently.

For overseas medical expenses, Saeed said the amount provided at the official rate has increased from just USD 159,000 in 2021 to around USD 3 million per month.

Meanwhile, monthly dollar sales for Maldivians travelling overseas have increased from USD 1.5 million to USD 10 million, he said.

Saeed blames dollar shortage on off-bank transactions

Addressing the gap between the official and black-market exchange rates, Saeed attributed the rise in the unofficial rate to dollars being sold outside the formal banking system rather than being deposited into banks.

He also criticized what he described as misleading media coverage and statements by opposition politicians, claiming that such narratives could encourage people to keep or trade dollars outside the banking system.

Saeed recalled that during former President Mohamed Nasheed’s administration, dollar shortages had resulted in people queuing to obtain foreign currency, while the exchange rate had risen to around MVR 17 per US dollar toward the end of that administration.

Saeed also blamed the previous administration’s decision to print MVR 8 billion for contributing to the depreciation of the Rufiyaa and said the country’s current economic difficulties were partly a consequence of those decisions.

He nevertheless assured the public that the Maldives would not go bankrupt, citing the government’s repayment of a substantial portion of debt, including USD 1.2 billion in loans taken during the previous MDP administration.

Saeed said the government is continuing to pursue major development projects under President Dr Mohamed Muizzu, including the completion of the new Velana International Airport terminal, development of the commercial port and expansion of major tourism projects.

The minister’s comments come amid continued public concern over the availability of US dollars, the gap between official and unofficial exchange rates, and the broader economic challenges facing the Maldives.