Dollar issue will be solved in a couple of months: Economic Minister

Minister of Economic Development and Trade Mohamed Saeed has stated that he has absolute confidence that the dollar issue faced by the Maldives will be solved in the upcoming two to three months.

Speaking to media ahead of the Maldives Investment Forum due to start in Dubai today, Saeed said that there are two factors at play in causing the dollar shortage that the country is currently experiencing.

"We have reached this point when it comes to the dollar situation because, when we came into office, the former administration has taken and used even what was being deposited in the Sovereign Development Fund. They had even taken money from that. Those are funds that we were collecting for debt repayment purposes. They created a debt, and even the airport was left unfinished," Saeed said.

"On the other hand, the price changes of oil has raised the need for dollars and increased the importance of its security. Hence, the issue now is there is a black market and businesses are reliant on that market."

The issues of dollar availability and rate hikes have remain unresolved for years now. Even today, dollars in Maldives is only available mainly through the black market, at a rate approximately two rufiya higher than the official rate.

"We can resolve that issue, and reach a solution in the next two to three months. That is our target," Saeed said.

Saeed pointed out that the number of tourist arrivals have increased significantly over the past one and a half months, adding that the foundation has now been laid to commence economic activities.

"What's next is to commence work," Saeed said.

"Even by IMF estimates, Maldives economy will see an improvement of 5.5 percent. Even in the past one and a half months, arrival rates have gone up significantly very swiftly. As a result of this, surrounding economic activities will also be boosted and go ahead at full speed."

Saeed revealed that the government owed MVR 7 billion to various companies when the government assumed office, adding that more than 50 percent of this has been settled now.

"In addition to this, we are getting a lot of mismanaged things back on track. We have completed the ground work on all we aim to do, the foundation is laid. Now we have to do the work."