The Muizzu administration has done absolutely nothing to cut costs or generate more foreign currency, instead shifting the blame to individuals and private parties whilst rampant corruption and colossal waste continues unabated.
Doubling the FX conversion requirement to 40% without any stakeholder consultation is a desperate and reckless escalation. The government must recognise that tourism is the country’s principal generator of foreign exchange, driver of the greater economy and local employment These increasingly disruptive and interventionist policies risk destroying the only sector that generates foreign currency and keeps this country afloat.
Foreign and local investment will suffer when resort development depends heavily on imported goods and foreign currency. With many resort loans and obligations denominated in US dollars, forcing resorts to surrender a large share of their dollar earnings could push otherwise viable businesses into default.
However, the 43% of Maldivians working in resorts will be hardest hit. The significant reduction in their earnings could make the long hours and prolonged separation from families less worthwhile, increasing dependence on foreign workers and further foreign currency outflows.
We must solve the FX crisis without destroying the tourism industry that is the backbone of our economy. The government must stop its relentless attacks on the private sector and its increasingly statist, interventionist policies.
A one way forced conversion will not solve the crisis. Unless surrendered dollars are fairly and transparently made available to businesses and citizens at the official rate, the shortage will simply shift to the parallel market.
We cannot solve an FX shortage by penalising those who generate foreign exchange. The answer is to generate more, by increasing tourist arrivals, expanding markets, improving connectivity and restoring investor confidence.
The government must immediately reverse these disruptive policies, engage meaningfully with the industry, ensure fair access to foreign currency, and address the underlying causes of the crisis I.e incomprehensible, irrational and simply bad Government policies.
Faya believes leadership starts with listening.
His vision is centred on people, their livelihoods, their aspirations, and their future.
A Maldives where opportunity reaches every community and every Maldivian has a chance to move forward. 🇲🇻☀️
#Faya2028
The rufiyaa is losing value every day in small moves and every week in bigger ones. BML management is acting more like a puppet of the gov than a bank. On top of this, MMA has released billions more into the system.