The government has raised the supply of US dollars to businesses at the official exchange rate, with the aim of easing price pressures in the market. Minister of Economic Development and Trade Mohamed Saeed said allocations have risen to as much as 50 percent of requests, compared to the much smaller shares previously made available to small and medium-sized enterprises.
The announcement comes at a time of heightened public concern over rising consumer prices and complaints of difficulties in securing foreign currency for imports. Officials say the measure is intended to support importers and ensure a steady flow of goods.
Alongside the increase in dollar allocations, the Cabinet has directed the State Trading Organisation (STO) to expand bulk imports of key goods. These include staples such as rice, sugar and flour, as well as lentils, eggs, potatoes, and ten of the most widely consumed fruits and vegetables. STO has already begun distributing oranges and has said it will ensure continuous availability of both apples and oranges. From mid-October, the organisation is expected to begin importing 23 designated food items.
Questions have been raised about whether foreign currency shortages are behind recent sharp increases in fruit prices, with some reports highlighting price hikes of several hundred percent. Minister Saeed argued that higher dollar allocations should have eased such pressures.
STO Managing Director Shimad Ibrahim noted that the company has not relied on government-provided dollars for its import operations in recent years. He said that during the past two Ramadans, STO used its own investments and banking arrangements to source the necessary foreign currency.
