Minister of Economic Development, Transport and Trade Mohamed Saeed has highlighted the rapid growth in the Maldives’ import activity and foreign exchange demand, saying the country’s expanding economy is placing increasing pressure on its existing trade infrastructure.
Speaking at the Maldives Maritime Conference and the “Ahaa” public forum, Minister Saeed said the Bank of Maldives (BML) had released nearly USD 2 billion over the past 30 months to meet the country’s growing demand for foreign currency.
He said approximately USD 3 billion was released at the official exchange rate between 2021 and the 2026 forecast period, with around two-thirds of that amount being disbursed during the last 30 months.
The Minister pointed to a significant increase in the use of US dollars for trade and other transactions. BML released USD 130 million for Telegraphic Transfers (TTs) at the official rate in 2022, followed by USD 122 million in 2023. However, the figure has increased sharply to USD 213 million so far this year.
On a monthly basis, the average amount allocated for TTs has risen from around USD 10 million to USD 27 million, while dollar spending through card transactions has increased from USD 161 million in 2022 to USD 304 million this year.
Minister Saeed also noted that the Maldives Monetary Authority (MMA) has increased the mandatory foreign exchange surrender requirement for tourism-related businesses from 20 percent to 40 percent.
“The full impact of this change will become clear starting the 25th of this month,” he said, noting that the previous 20 percent requirement had already produced positive signs in the foreign exchange market.
He said the government would continue providing dollars at the official rate for essential needs, including overseas education and medical treatment, as well as Hajj and Umrah pilgrimages.
The Minister also said the current administration had repaid USD 1.4 billion in debt, describing it as the largest debt repayment in the country’s history. He added that the Ministry was working in close cooperation with the MMA to introduce measures aimed at achieving greater stability in the foreign exchange market.
Meanwhile, Minister Saeed said the sharp rise in imports demonstrated the strength of economic activity, but also exposed serious limitations in the country’s existing port infrastructure.
He identified the development of Malé Commercial Harbour as one of the major challenges facing trade and said the Government is working to relocate the harbour to Thilafushi.
Nearly four decades have passed since the existing commercial harbour was developed, he noted, with successive governments recognising the need to expand and modernise the facility. The current administration, he said, has moved to turn those plans into action.
A consortium involving three companies has been established for the harbour project, with the Government aiming to develop a modern facility capable of handling the country’s growing trade requirements.
“If Almighty Allah wills, by around November 2028, Maldivian businesses and the Maldives will have a fully functioning modern harbour,” Minister Saeed said.
He described the project as a potential solution to a major structural problem that has constrained the Maldivian economy for almost four decades.
The Minister said import volumes have now reached unprecedented levels, with the country importing goods on a scale not previously seen even within a single day. He cited the tourism industry as a major driver, noting that projects worth approximately USD 11 billion are currently underway in the sector.
The pressure on the existing harbour is evident in the volume of cargo awaiting clearance. Minister Saeed said thousands of containers were being processed, while Maldives Ports Limited had recently recorded its highest number of container cargo clearances initiated in a single day.
He said the increase in imports reflects the growing activities of businesses and the broader expansion of the Maldivian economy, while also demonstrating the urgent need for infrastructure capable of supporting future growth.
“The Maldives is now importing goods at levels we have never imported even in a single day. Imports are increasing,” he said. “We can see the work businesses are doing to strengthen the economy and, alongside that, the progress the Maldives is making.”
The Maldives Maritime Conference brought together local and international maritime experts, industry stakeholders and other participants to discuss developments, challenges and opportunities within the country’s maritime sector.
