It’s been three months and the dollar rates are still spiking- DQP

Opposition Dhivehi Qaumee Party (DQP) has said that three months has passed since the government set the US Dollar exchange rate within a band of fluctuation of 20 percent, and still the rates are spiking higher although the government promised to stabilize the exchange rate below the median of the band of fluctuation within a period of three months.

In a press statement of the party, DQP said that it is the government makes innumerable promises and pledges to deceive the public. The party said that this same ploy was used by the government to fool the people by making the false promise to stabilize the exchange rate below the median of the band of fluctuation allowed for the exchange rate of Rufiyaa against US Dollar.

“The government promised to solve the dollar shortage within three months but now the dollar exchange rate has spiked to 17 Ruffiya and the black market has grown even stronger. This is evidence enough that the economic policies of Nasheed’s government has failed,” the party said.

DQP faulted President Nasheed for over breaking the US Dollar peg on Ruffiya saying cost of living has shot up, placing the people in a struggle for survival. The party said that the government irresponsible economic policies spelt disaster on all fronts and it has not solved the shortage of dollars either.

Meanwhile, on April 10, the government allowed the dollar to be traded within a band of 20 percent to the peg rate of Rf. 12.85. The International Monetary Fund, despite blaming the Maldives government in March during Article IV consultation over “significant policy slippage” and staggering government expenditure, however hailed the floating exchange rate calling it a “bold step towards restoring external stablity.”