US Dollar rate lower than when administration took office: Minister Saeed
Minister of Economic Development, Transport and Trade Mohamed Saeed has said the US Dollar exchange rate is declining following intensified government efforts to dismantle the foreign exchange black market.
Speaking at a press conference at the President's Office, Saeed said unauthorized currency traders had previously manipulated US Dollar prices and artificially pushed up exchange rates, creating a parallel market that also attracted businesses seeking to pay employee salaries at rates outside the official system.
Saeed said current exchange rates have now fallen below the levels recorded when the current administration assumed office, bringing rates closer to the range maintained under the previous administration.
Through that work, we now know that the exchange rate is declining. Now, hopefully, according to the information we receive, we are informed that it has gone down since we took over this government. This means that the rate as of November 17, 2023, is slightly in that band. This is a huge improvement.
Minister Saeed said
The minister attributed the decline to recent amendments to foreign exchange regulations and enforcement operations targeting illegal currency trading networks.
Law enforcement agencies recently uncovered several unauthorized operations, with seven establishments alone reportedly processing around USD 76 million through illegal channels.
Saeed said enforcement measures will continue in coordination with major foreign exchange earners as the government works to stabilize the currency market and curb unauthorized trading.
During the briefing, the minister also highlighted progress in the government's efforts to diversify the Maldivian economy.
He announced that offshore bunkering services, introduced in September 2024, have generated approximately USD 80 million in revenue since their launch.
The bunkering operation is run by the State Trading Organization (STO) in partnership with global energy trading company Vitol.
The initiative provides fuel services to vessels operating in Maldivian waters and represents a new source of revenue for the country.
The service has recorded steady month-to-month growth, with demand supported by the availability of newly imported low-sulfur fuel oil for vessels traveling through Maldivian waters.
The government has identified offshore bunkering as part of its broader efforts to create new revenue streams and diversify economic activity beyond the country's traditional dependence on tourism and fisheries.
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