The shortage of foreign currency in the Maldives : can we solve foreign currency shortage in the Maldives? / Mariyam Nushra

Abstract

Issue of dollarization and shortage of US dollar in the Maldives have been a part of few studies, yet has not brought much solution to the problem. With the study of the current situation in the Maldives due to shortage of US dollar, objectives of this research is to analysis the ways in which US dollar is circulating in the economy and what are the effects to the economy due to shortage of US dollar in the Maldives. Hence find solution for the problem of US dollar shortage in the Maldives, which will bring benefits to the country. This research is a descriptive research where a survey was conducted to find the solutions for the shortage of US dollar in the Maldives. Apart from this, a qualitative research method was used to examine. Data sampling of the research was 100 participants. However, 70 people responded to the survey questionnaire. From the data collected all the information are presented and analyzed to support the objectives of the research. From this research, the ways in which the US dollar is circulating in the economy was analyzed and the effects to the economy were identified. So several recommendations includes, reduce the number of expatriate workers and open opportunities for the domestics, improve and strengthen financial regulation by the Central Bank, implementation of fixed exchange rate, generating ways to bring more US dollar into the country and finally reducing the number of people travelling abroad.