Minister Shafeeq has said that steps are being taken to resolve the dollar shortage in Maldives. He stated that measures to end black market transactions are being reviewed and steps that needs to be employed by the State are being identified within this.
Minister of Finance, Dr. Mohamed Shafeeq, has emphasized the implementation of crucial measures to address the dollar shortage issue Maldives and reduce the country's dependency on the currency.
During an interview with Mihaaru News, Minister Shafeeq stated that the Ministry is working closely with the central bank, Maldives Monetary Authority (MMA) in order to resolve this issue.
He further added that a stronger monitoring system compared to the current one would be implemented to alleviate the shortage.
"Resorts and companies also need to maintain trust in the bank." he said.
Minister Shafeeq stated that resolving this problem will take some time, but regardless, the entire system will see positive changes with the measures that will be implemented.
He highlighted that they were seeking ways to end black market transactions opted by small and large businesses, further stating that this can only be achieved once the country's dollar rate has been maintained.
The country's dollar conversion rate is MVR 15.42. However, nearly four years have passed since the black market rates escalated over MVR 17. The former administration also made efforts to resolve this issue, although no suitable solutions were found at the time.
"Registered and unregistered individuals with jobs are engaging in significant international dollar transactions. It's crucial to ascertain whether the funds generated through the tax system and business transactions are accurate and whether how much in addition can be acquired through withholding," he said.
Another obstacle to resolving the issue is the limited dollar transactions within the banking system," he said, adding that if measures are put in place to facilitate dollar transactions within the banking system, the amount of dollars in banks will increase. "If there are benefits for businesses in keeping foreign currency in the bank, they will do so," he said.
"The government aims to ensure a safe environment for businesses and individuals by increasing the security provided through banking system transactions," the Minister said.
He reiterated that the government is actively looking into ways and identifying measures that can be implemented to address the dollar shortage issue.
Additionally, discussions are underway with China and India, which are the largest importers of goods into Maldives, to explore methods for settling payments using the Maldivian currency.
Minister of Finance, Dr Mohamed Shafeeq during his interview with Mihaaru News. -- Photo: Fayaz Moosa / Mihaaru News
A dollar transaction. -- Photo: Nishan Ali / Mihaaru News
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