MP Ahmed “Tom” Thoriq (Mahibadhoo) has said that the efforts of many governments to forcefully restrict the outflow of US dollars had seen a better end.
He mentioned this during a debate regarding a motion submitted by MP Ahmed Haroon. The motion called for a solution to the outflow of US dollars generated by business conducted in the Maldives without going through the Maldives’ financial system.
MP Thoriq said that the government was formulating policies to combat the black market for US dollars that had developed. He said that although some countries had done some things right, de-dollarisation efforts by other countries had not been as successful.
MP Thoriq warned the government of being wary of changing the laws so that the State’s unusable reserves could be utilised. He said that such measures may exacerbate the already weakened state of the economy.
He said that the recommendation of experts was to implement sustainable, long-term solutions. He said that there was no magic trick to make the black market disappear.
MP Thoriq said that the economy was in such dire straits because the government, with the approval of the Majlis, had decided to print more money during the economic fallout of COVID-19 in the Maldives.
He warned that proceeding without a long-term plan would further exacerbate the situation.