Trade with India, China to Bolster Rufiyaa Against Dollar, Says Minister

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Minister of Economic Development and Trade Mohamed Saeed, has disclosed a series of initiatives aimed at securing the value of the Maldivian Rufiyaa to the US Dollar, including increased trade relations with China and India.

Addressing attendees at a ceremony between the Maldivian government and Dubai’s International Freezone Authority (IFZA), Minister Saeed said collaborative efforts with foreign partners, especially key markets such as China and India, will elevate the value of the Maldivian Rufiyaa vis-à-vis the US Dollar, with tangible outcomes expected within the next five years.

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Minister Saeed conveyed confidence that these enhancements would positively impact local enterprises.

In efforts to bolster the Maldivian economy, the current administration’s various measures include the cessation of new banknote printing.

President Dr. Mohamed Muizzu previously attributed the maintenance of the Maldivian Rufiyaa’s value to this measure, citing its role in stabilising the US Dollar rate.

In response to economic challenges exacerbated by the COVID-19 pandemic, the previous administration suspended articles of the Fiscal Responsibility Act in April 2020, authorising the printing of new banknotes. This suspension was subsequently extended twice, permitting the issuance of up to MVR 4.4 billion.

Despite the Maldives Monetary Authority (MMA) setting the conversion rate at MVR 15.45, acquiring US Dollars at this rate remains unfeasible.

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