Firaq urges to transform Maldives into a single currency economy

Mohamed Firaq, the Founder and CEO of Inner Maldives, has called for reforms to the Maldives’ existing monetary practices, advocating for a transition toward a "single currency economy."

Speaking during the 'Igthisaadhuge Dhefaraaiy' (Two Sides of the Economy) programme hosted by the Economic Ministry, Firaq noted that the Maldives currently operates under a dual-currency system, describing the practice as "archaic" in its origins.

Firaq highlighted a significant disparity within the economy, noting that while the tourism industry operates predominantly in US Dollars, the daily economic activities of Maldivians are conducted primarily in Maldivian Rufiyaa.

He also drew attention to the presence of approximately 280,000 foreign workers in the country, noting that their salaries and other earnings are converted into US Dollars each month before being remitted overseas.

"Our monetary policy needs to modernize. This does not mean changing laws in a way that threatens investors, but rather maturing and migrating toward a single currency economy," Firaq stated.

He further noted that the substantial volume of daily cash withdrawals from bank ATMs cannot be attributed solely to the needs of Maldivians, suggesting that there are multiple channels through which currency leaves the formal economy.

Addressing the issue of foreigners operating businesses illegally, Firaq said this was an area in which Maldivians had lost control. He stressed the need to bring such transactions under a structured regulatory framework to ensure that capital remains within the domestic economy and continues to circulate through regulated channels

Concluding his remarks, Firaq stated that the country’s legal framework had failed to keep pace with the expansion of the Maldivian economy. He emphasized that a comprehensive overhaul of the existing monetary policy, aligned with modern economic realities, has become an urgent necessity.