Notwithstanding the blatant illegal efforts by @bankofmaldives to sideline the FX laws and regulations (where is @MMA_Maldives ? ), following a continued inability by President Muizzu’s administration to secure a steady supply of foreign currency, and the worsening access to USD for citizens, BML has officially entered the black market for USD.
Rather than correcting any deficiencies through official channels, or improving the state’s balances, BML has now been pushed into purchasing USD outside of the legally defined rate. Whatever pretenses of “investment” they are claiming, this is undeniably the formalization of a black market rate for USD without the approval of MMA.
This follows increasingly tighter, obscure controls on how much Maldivians can spend in foreign markets, and is clear indication of the severity of the government’s ineptitude. Forcing BML into illegally buying dollars cannot be the solution to our problem of dollar access.
And all of this is because the administration has no fix to offer despite the false promises. The foreign currency of the private sector and SOEs were diverted to "repay" the debt, the government called it a victory, and left us scrambling for dollars. The dollar sukuk the Bank is chasing might not materialise anytime soon, and there are no real plans to overcome this FX crunch. There is no quick fix, and no amount of window-dressing can hide the reality forever. You can only fix the economy with sound long-term policy and good governance.