President: Value of MVR stabilized; USD rate starting to come down

US dollar bills. (File Photo/Sun)

President Dr. Mohamed Muizzu states the stoppage of printing new banknotes by his administration has led to the value of Maldivian Rufiyaa stabilizing and the rate of US Dollar starting to come down.

The President, as part of his ongoing tour of all Maldivian atolls, visit Meedhoo in Dhaalu Atoll last night during which he held a meeting with the island’s residents. Speaking at the meeting, President Muizzu underscored that his administration, after assuming office, stopped printing new banknotes, adding Maldives would fall to the verge of bankruptcy and US Dollar rate would skyrocket if it had not been done.

The central bank, Maldives Monetary Authority (MMA), has set MVR 15.45 as the exchange rate. Nevertheless, it is impossible to purchase US Dollar at that rate while black market prices of US Dollar ranges between MVR 17 and MVR 17.40 at present.

President Muizzu said Maldives’ foreign debt stood at USD 120 billion when the current administration took place. He also noted MVR 9 billion was owed to small companies of private individuals that were contracted for various works by government ministries and companies.

In April 2020, the Parliament approved the suspension of Article 32 (a), (d), and (e) of the Fiscal Responsibility Act, in order to increase the overdraw limit of the public bank account at the central bank.

The suspension was later extended twice, with the former administration being allowed to print up to MVR 4.4 billion.

The government states they are implementing strong fiscal reforms in light of the concerning state that the Maldivian economy is presently in. As part of these efforts, the government has held discussions with senior officials from foreign nations and international financial institutions, who, according to the government, have expressed intention to cooperate with the Maldives in these efforts; owed to the administration’s economic policies.