MMA Governor silent on USD crisis timeline despite closed PAC meeting

Despite a closed-door meeting between the Parliament’s Public Accounts Committee and the Maldives Monetary Authority (MMA) on Monday morning, requested thus by Governor Ahmed Munawar to discuss the USD shortage, the Governor has reportedly refrained from providing a timeline for resolving the dollar crisis.

This shortage has caused the black market rate for USD to exceed MVR 20, leading to growing public frustration over Governor Munawar’s apparent silence on the matter.

The Governor's request for a confidential meeting faced opposition from Hanimaadhoo MP Abdul Ghafoor Moosa, a member of the main opposition Maldivian Democratic Party (MDP). He argued that the meeting should not be held in private, given the significant public interest in the USD situation. Nevertheless, the PNC-majority Public Accounts Committee opted to maintain the meeting's confidentiality.

A Public Accounts Committee member informed Sun that the Governor engaged in various discussions with the committee members regarding the economic situation in the Maldives. However, he did not indicate when the dollar issue would be resolved or when the dollar would depreciate.

The MDP had dispatched a letter on July 16, requesting a meeting with Governor Munawar to address concerns about the escalating USD rate in the black market. However, the MDP reports that they have not received a response and have repeatedly sought a meeting at the MMA headquarters, which has yet to be granted.

The official bank rate for the dollar in the Maldives is MVR 15.42. However, the scarcity of dollars from banks has intensified, compelling the public to acquire dollars from the black market for essential transactions. Black market dollar traders are now selling dollars to the public at a rate higher than their own acquisition cost, purchasing at MVR 20 and selling at MVR 20.15 for profit.

The dollar experienced its most favorable period since the interim government assumed power in February of last year. The government had previously assured the public that the dollar would not appreciate further and would decline. In April, President Mohamed Muizzu stated that the dollar crisis in the Maldives would be addressed, and the dollar's value could return to the bank rate by the end of 2027. However, the dollar's value continues to appreciate daily.