Maldives: 2001 Article IV Consultation-Staff Report; and Statement by the Executive Director for Maldives

IMF Staff Country Reports, September 3, 2019

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Economic challenges are "strongly influenced by geography and environment."
Government development strategy:
- Creating new growth centers in the north and the south of the country.
- Massive land reclamation in the vicinity of Male.
Despite a slowdown in growth in 2000, the economy "has prospered with the rapid expansion of tourism and the modernization of the fisheries."

At the conclusion of the last Article IV consultation on November 9, 2000, Executive Directors:
- Praised Maldives' overall performance.
- Warned of emerging imbalances.
Main causes of recent imbalances:
- Fiscal slippage, compounded by adverse external developments.
- Manifestations: rapid monetary expansion and sustained pressure on the exchange rate.
Monetary developments dominated by:
- Central bank financing of fiscal deficits.
- Excess demand for foreign exchange.

IMF staff team conclusion: an adjustment of the exchange rate "was not warranted until other options had been explored more fully."

Subject: Currency markets, Exchange rates, External debt, Financial markets, Foreign exchange, Real effective exchange rates
Keywords: CR, Currency markets, devaluation, Europe, exchange rate, exchange rate policy, Exchange rates, Global, ISCR, monetary management system, Real effective exchange rates, right, rufiyaa devaluation, South Asia, tuna market, U.S. dollar

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