Minister of Economic Development and Trade Mohamed Saeed has reiterated concerns over businesses earning in foreign currency but failing to deposit these funds in Maldivian banks, a longstanding issue that has contributed to economic instability.

Speaking at Ahaa, the Ministerial Forum organised by the President’s Office and Public Service Media (PSM), he stated that such practices were tolerated under previous administrations.

Minister Saeed explained that the issue dates back to at least 2008, predating the new Constitution enacted. He noted that successive governments had failed to directly address the matter, allowing it to persist for decades. The lack of intervention, he said, had led to significant economic consequences, affecting both businesses and individuals reliant on foreign currency.

The Minister pointed to the difficulties faced by Maldivians studying abroad or seeking medical treatment overseas, stating that many had been forced to turn to the black market for foreign exchange. He added that this situation had contributed to economic challenges, allowing the black market to profit from unregulated foreign currency trade and further destabilising the economy.

Minister Saeed acknowledged that the current Administration had inherited a complex financial landscape but stressed that efforts were underway to resolve the crisis. He noted that collaboration with the tourism industry was a key part of the Government’s strategy.

The Government has outlined several measures to ease foreign currency pressures. Minister of Tourism and Environment Thoriq Ibrahim announced that during the upcoming Ramadan period, a USD 1,500 debit card limit would be introduced for individuals travelling for Umrah. He also confirmed that the Administration plans to increase credit card limits in the first quarter of next year and raise the amount of US dollars available at the airport upon departure from USD 500 to USD 1,000. These measures, he said, were part of efforts to stabilise foreign currency availability.

Officials believe that greater compliance with foreign exchange regulations, particularly from businesses in the tourism sector, will help address the issue. The Government has indicated that it will continue discussions with industry stakeholders to ensure a more regulated flow of foreign currency into Maldivian banks.