President Muizzu Defends Research-Based Measures to Resolve Foreign Currency Crisis

President Dr. Mohamed Muizzu has assured the public that the government's strategy to tackle the ongoing foreign currency crisis is grounded in extensive research and technical evaluations. Speaking on PSM’s Nation Chat programme, the President stated that these measures are designed to bring stability to the national economy and generate long-term positive outcomes. To address the dollar shortage, the administration is focusing on a dual approach: formulating new economic policies and strictly enforcing existing laws that had previously been overlooked. President Muizzu acknowledged that while some political opponents have criticized these steps, he believes the general public supports the government's efforts, recognizing that decisive action is necessary to stabilize the economy. He emphasized that the policies were not developed in isolation but are the result of comprehensive studies and consultations. The President further guaranteed that the government would avoid implementing any measures that could stifle overall economic growth. A central pillar of this strategy involves the Maldives Monetary Authority (MMA). The central bank is currently working to strengthen the domestic banking sector and increase the number of local banks. The primary objective is to ensure a higher volume of foreign-exchange earnings circulates within the Maldivian financial system rather than leaking abroad. As part of these efforts, the government is amending the Foreign Exchange Act. The proposed changes will mandate that foreign-currency earners, specifically resorts and guesthouses, deposit 40 percent of their monthly foreign-exchange earnings into local banks. This move is intended to increase the liquidity of US dollars within the country, easing the pressure on businesses and individuals struggling with currency volatility.