Minister of Finance Ibrahim Ameer has said the value of the Maldivian currency will be maintained and the supply of foreign exchange for economic activities will be sufficient in 2023. He made the remark presenting the State Budget 2023 to the Parliament of the Maldives.
Speaking at the Parliament, Minister Ameer said the official reserves are one of the most important strands of fiscal and economic policies. He highlighted that economic activity has accelerated, imports have increased and prices of imported goods, especially oil, have risen. As a result, he said there are obstacles to increasing official reserves in the short term and with the measures being taken by the government, the Maldives reserves will be maintained at an adequate level. He stated the official reserves of Maldives are expected to be at USD638 million by the end of this year, and at USD606 million by 2023. He said the level will maintain the value of the currency and prevent the shortage of supply of foreign exchange for economic activities.
Regarding the economic situation of Maldives, Minister Ameer said the economy is growing faster than the world economy and the International Monetary Fund (IMF) views the global economy as bleak and uncertain, however, the outlook for the Maldives economy is the opposite. Noting despite the growth of the economy and industries of Maldives, oil and commodity prices remained high in the world market, the minister said that subsidies and various government policies have reduced the impact of inflation in the Maldives compared to other countries in the world. He, however, said such policies are not sustainable, adding the inflation rate is expected to be 5.4% in 2023.