Should the Maldives float its currency? As the gap between the official and parallel exchange rates widens, the Maldives faces an increasingly urgent policy question; how should the exchange rate system evolve from its current constrained band toward a more sustainable framework? Experience elsewhere suggests that without stronger reserves, robust fiscal discipline, and deeper foreign exchange liquidity, a sudden move to float the currency could create more instability than s

After four decades of treating tourism as the Maldives’ national salvation, the country faces a harsh reality; the sector, while supplying foreign exchange, has not delivered a resilient economy. For more than four decades, successive Maldivian governments have invested heavily in tourism and promoted it as the country’s economic saviour. It became the organising idea of national development; expand resort capacity, attract more arrivals, earn more foreign currency, and assum

Over the past 38 years, Maldives tourism has weathered a wide range of global and domestic shocks — a testament to its resilience. The Maldives' tourism sector is uniquely exposed to world events — geopolitical tensions, health crises, economic downturns, and natural disasters all influence visitor flows. Recent disruptions, including the conflict in the Middle East, once again highlight how sensitive tourism and aviation are to international uncertainties. This long history