Government does not understand the real economy and is focused on headline-friendly decisions, says former MP Hussain Mohamed Didi

Former Fuvahmulah Central MP Hussain Mohamed Didi has criticised the government, saying it does not know how to assess the Maldivian economy and is focused on making headlines rather than implementing real economic reforms.

Speaking on SSTV’s Baaru Hathareh programme, Hussain said he does not see the government taking meaningful steps to lower the dollar rate. He said the government should clearly know how much demand there is for dollars, how much foreign currency the country receives, and how much debt it carries. Instead, he said, wasteful expenditure has increased and more people are being appointed to political posts.

Hussain said that at the end of COVID-19, the previous MDP administration had begun taking reform measures to stabilise the economy. He said the central bank was expected to implement contractionary monetary policy, tightening liquidity to reduce pressure on the exchange rate, but he does not see the Maldives Monetary Authority (MMA) enforcing such measures.

He alleged that the government attempted to raise money through the Pension Office and that he also saw Hulhumale's parent company, Housing Development Corporation (HDC), trying to raise funds for the government through MMA.

“In reality, we are issuing more rufiyaa against the dollar through MMA, and because of this, the dollar rate is going up,” Hussain said.

He noted that the government has insisted the dollar rate would not rise following amendments to the Forex Act. However, he said the dollar that was previously available for MVR 17 is now selling for MVR 21 on the black market.

“So it is clear that neither President Muizzu nor the government can properly assess what is really happening in the economy,” Hussain said.

Hussain said he does not see the government undertaking any reforms and that no real policy is being implemented to improve the economic situation.