Economic Minister Mohamed Saeed has hit back at opposition criticism of the government's handling of the foreign exchange shortage, accusing the previous Maldives Democratic Party (MDP) administration of devaluing the rufiyaa through excessive money printing.
Saeed made the remarks in a video posted on social media after MDP Chairperson and former President Mohamed Nasheed called on the government to reduce the USD exchange rate to MVR 19 ahead of the MDP protest scheduled for Thursday night.
Saeed said the amount of USD being issued by banks at the official exchange rate has increased significantly compared with the MDP administration.
He accused the opposition of deliberately creating uncertainty in the market and encouraging the black market for political purposes and to mobilize people for protests.
However, he said the public would be able to see the facts for themselves.
Citing figures from 2021, Saeed said banks issued an average of USD 10 million a month through bank cards during the MDP administration. The figure has now increased to USD 39 million a month, he said.
Banks issued an average of USD 6.7 million a month through TT to import businesses in 2021, compared with USD 26.6 million a month now, according to Saeed.
He said the government has also increased dollar allocations for students studying abroad from USD 1.9 million to USD 3.6 million a month.
Minister Saeed said the amount available at the official exchange rate for Maldivians travelling abroad for medical treatment has also increased from around USD 300,000 a month during the MDP administration to USD 3 million a month today.
"I am saying that the situation is not the same as it was under the MDP government. Now the amount of dollars issued through banks to businessmen, students, those seeking medical treatment and people travelling abroad is not the same as what the MMA or Bank of Maldives has ever issued before," he said.
Minister Saeed said the black market develops when dollars do not enter the formal banking system and are instead traded outside it.
He alleged that some media headlines and statements by MDP leaders were contributing to the increase in the unofficial exchange rate.
"Now, especially, these are the same people who have ruled the country. One person in the morning and another in the evening are setting the rate. Don't do these things like this," he said.
Saeed also criticised economic decisions taken by the Nasheed administration, recalling claims that the government had considered deploying police to maintain the dollar exchange rate.
He cited the sale of the main airport to GMR, selling of shares in state-owned companies and what he described as excessive money printing during the Covid-19 pandemic as examples of poor economic decisions.
"Didn't President Nasheed say, while he was Parliament Speaker, that if you print money, [if you ignore the law] and print MVR 8 billion, the value of the rufiyaa will fall?" Saeed said.
Saeed said the current government has repaid USD 1.2 billion in loans taken by the previous administration and rescued schools and hospitals that had been mortgaged.
He said the government is also planning major projects worth USD 10 billion to revive the economy, including the completion of the new terminal at Velana International Airport.
"At this time when the country is breathing a sigh of relief and trying to recover, I urge you not to spread lies that harm the economy," he said.
Minister Saeed said the government's objective is to develop the Maldivian economy in a sustainable manner.
