Maldivian Democratic Party (MDP)'s presidential candidate, President Ibrahim Mohamed Solih, has said he believes that the exchange rate of the dollar can be reduced to MVR15 per dollar by ensuring that 30% of the dollars entering the Maldives remain within the country. He made the remark during a rally held in Addu City in anticipation of the second round of the presidential election scheduled for Saturday.
In his address at the gathering, President Solih emphasised the government's commitment to addressing the issue of dollar stagnation. He outlined a multi-pronged approach to tackle this challenge, which includes a shift towards de-dollarization for all domestic and business transactions, promoting the use of the Maldivian Rufiyaa. This strategic shift, he explained, would encourage dollar-earning businesses to engage in dollar marketing activities while enabling the public to accumulate sufficient dollar reserves in local banks.
Another significant aspect of President Solih's strategy to mitigate the dollar issue involves compelling businesses to retain a specific percentage of their dollar earnings in a Maldivian bank for a predetermined period. He noted that discussions with businesses were already underway, with substantial progress made in reaching a consensus to retain 30% of dollar income within the Maldives.
President Solih pledged that if re-elected for a second term, he would swiftly implement one of these policies within the first year of his tenure. He asserted that such measures would effectively address the challenge of dollar stagnation, foreseeing that if 30% of the country's dollar income remains within the Maldives, it would lead to a reduction in the dollar exchange rate to below MVR 15.
Furthermore, the President expressed optimism regarding the country's economic prospects, forecasting substantial growth from MVR 82 billion to MVR 170 billion over the next five years, generating more than USD 6 billion in revenue. These initiatives, he believes, will play a pivotal role in achieving these economic targets and fortifying the nation's financial stability.