The economy of the Maldives currently has MVR 78 billion circulating, all of which is "chasing" merely USD 800 million, stated former MP Ilyas Labeeb on Sunday evening.

The MDP opposition conducted a panel discussion regarding the dollar scarcity on Sunday night as the value of dollars keeps increasing daily.

In the panel discussion, Ilyas mentioned that the Maldives Monetary Authority (MMA) estimates the nation generates approximately USD 5.5 billion each year from tourism, fisheries, and various other sectors. Nonetheless, he mentioned that the quantity of rufiyaa in circulation within the economy has increased significantly.

He mentioned statistics indicating that the money supply was MVR 41.4 billion in 2020. At the start of this month, the government’s money supply increased to MVR 78.4 billion, indicating that tens of billions of rufiyaa are currently circulating in the economy.

"This 78 billion is pursuing every dollar that the country has." "The data indicates that USD 800 million was added to the national budget," stated former Member of Parliament Ilyas Labeeb.

He mentioned that based on the existing black-market rate, the overall dollar liquidity in the Maldives amounts to just around MVR 16 billion, which is significantly less than the rufiyaa in circulation within the system.

Ilyas highlighted that the Maldives generates nearly all its dollars from tourism, and that this same pool of dollars is utilized across all sectors. He stated that he thinks a shortage of dollars is unavoidable given the present circumstances.