Former President and Speaker of the Parliament, Mohamed Nasheed, stated that the solution to dollar scarcity is to raise the exchange rate of USD-MVR to MVR 17 and to urge banks to maintain that as the official exchange rate.
Speaking at a party gathering held in S. Maradhoo, the President of MDP said that the US Dollar reserve in the central bank has dwindled to a worrying state.
Nasheed said that there was no use in living self-delusion, holding onto a standard rate of MVR 15.42 per dollar when the black market is the only way to get US Dollars, where it is sold at the rate of MVR 17.
Nasheed argued that having a black market rate for US Dollars creates room for unlawful profits extortion and to control it, currency floating was necessary. Nasheed said that then the dollars will then be in its rightful places at its rightful rates.
The speaker claimed that the ultimate US Dollar buying rate of MVR 17 in Maldives was a long-proven fact and raising the standard rates to match it will stabilize the market instantaneously.
However, Nasheed stated that the Minister of Finance and the Governor opposed this proposition calling it to be an untimely decision. Nasheed said that despite their doubts, he was convinced that this was the time to raise US Dollar rates.
Nasheed asserted that if banks started selling it for MVR 17 as well, the dollar inconsistencies will stabilize itself.