BML CEO Says Dollar Shortage Claims Are Fueling the Black Market

As Maldivians continue to struggle with a shortage of US dollars, Bank of Maldives (BML) CEO Mohamed Shareef has argued that the bigger problem is not the shortage itself, but the claims that dollars are unavailable.

Responding to discussions circulating in the media about the foreign currency situation, Shareef said assertions that there is “no dollar available” are being made to drive up black market exchange rates. He described such claims as an attempt to inflate the value of the US dollar in the parallel market.

Shareef acknowledged that the bank is facing operational challenges, explaining that demand for US dollars exceeds the amount the bank is able to purchase. However, he maintained that reports claiming dollars are unavailable are exaggerated and are contributing to higher black market prices.

He said these narratives are being spread with the intention of increasing the dollar’s value on the black market.

Despite Shareef’s remarks, economists have expressed concern that BML’s own foreign exchange policies are contributing to the rise in black market dollar rates. They argue that recent initiatives introduced by the bank, including its new dollar investment scheme, could push black market exchange rates even higher than before. Economists have warned that such policies may further tighten access to foreign currency and increase pressure on the market.