Ilyas warns FX imbalance is driving the dollar crisis to dangerous levels

Maldives’ economy now has MVR 78 billion in circulation, all of which is “running after” just USD 800 million, former MP Ilyas Labeeb said Sunday evening.

The opposition MDP held a panel discussion on the dollar shortage on Sunday evening as the price of dollars continues to rise day by day.

During the panel, Ilyas said the Maldives Monetary Authority (MMA) estimates the country earns around USD 5.5 billion annually from tourism, fisheries and other sources. However, he noted that the amount of rufiyaa circulating in the economy has expanded sharply.

Citing statistics, he said the money supply stood at MVR 41.4 billion in 2020. At the beginning of this month, the government’s money supply had risen to MVR 78.4 billion, meaning tens of billions of rufiyaa are now moving through the economy.

“This 78 billion is chasing all the dollars available to the country. The figures show that USD 800 million entered the country’s budget,” former Member of Parliament Ilyas Labeeb said.

He added that considering the current black‑market rate, the total dollar liquidity in the Maldives is equivalent to only about MVR 16 billion, far below the rufiyaa circulating in the system.

Ilyas also noted that Maldives earns dollars almost entirely from tourism, and that the same pool of dollars is used for every sector. Therefore, he said he believes a dollar shortage is inevitable under the current conditions.