Government’s dollar strategies have failed: Nasheed

Former President Mohamed Nasheed has said the government’s efforts to address the shortage of US dollars have failed, warning that the exchange rate could continue to rise.

In a post on X this morning, Nasheed said that even people with funds in their bank accounts in Maldivian Rufiyaa are unable to convert their money into US dollars, highlighting the difficulties caused by the ongoing foreign currency shortage.

He said the situation has placed considerable strain on families living abroad for educational purposes and the business community, describing their circumstances as increasingly dire.

Nasheed also claimed that the Maldives avoided defaulting on its debt obligations this month only because India extended the repayment period of its currency swap agreement with the country.

The former president also appeared to question the timing of President Dr Mohamed Muizzu’s ongoing official visit to Pakistan, in light of the economic challenges facing the Maldives.