Economic Minister Says MMA Responsible for Dollar Price Rise

Economic Minister Mohamed Saeed has stated that the Maldives Monetary Authority (MMA) should bear responsibility for the rising dollar price in the black market and the increasing cost of goods, and that questions regarding the matter should be directed to the central bank. Responding to a no-confidence motion filed by Maaroof Zakir, Member of Parliament for Kendhoo constituency, before the People’s Majlis, Saeed said that to answer the question posed to him regarding the rise in the dollar price in the black market and the increase in the prices of goods, he first needed to examine the law. He stated that upon examining the law, it is the MMA that has been assigned the responsibility by law to determine foreign exchange rates, formulate policies related to this matter, and implement them. Saeed said, "Under Article 24 (a) of the Maldives Monetary Authority Act 1981, the responsibility for managing the country's foreign exchange matters has been assigned to the Maldives Monetary Authority to implement the exchange system, determine exchange rates, and formulate and implement policies related to exchange rates." "In no way is this matter handled differently; therefore, I believe that the parties who submitted this question have access and the opportunity to directly address the authority to whom this question has been assigned by law." Defending against concerns over the rising prices of dollars and commodities, Saeed stated that the current government manages the economy better than before. He said that compared to the previous government, the amount of dollars sold to the public at the official rate has increased by 80 percent. Saeed made these remarks while responding to the first question included in the no-confidence motion against him. The first question in the motion, which was submitted to the Majlis with the signatures of 13 opposition members, stated that the rising value of foreign currency is due to the Economic Minister failing to practically implement a policy required to bring about economic reforms in his capacity as Economic Minister. The motion alleged that instead of working to resolve the issue caused by the rising price of dollars in the black market, Saeed has been claiming that difficulties facing the banking system regarding dollars are natural and attempting to downplay the seriousness of the matter. Furthermore, the motion submitted by the MDP highlighted that Saeed had stated that if the PNC wins the majority in the Majlis during the parliamentary elections held in 2024, they would reduce the dollar rate to 15.42. In response to these allegations, Saeed stated that the economy is managed much better under this government than before.