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

_IMF Staff Country Reports, September 3, 2019_

## Source details

**Canonical URL:** [Maldives: 2001 Article IV Consultation-Staff Report; and Statement by the Executive Director for Maldives](https://www.imf.org/en/publications/cr/issues/2019/09/03/maldives-2001-article-iv-consultation-staff-report-and-statement-by-the-executive-director-48636)

## Other formats

- [Markdown version](/en/publications/cr/issues/2019/09/03/maldives-2001-article-iv-consultation-staff-report-and-statement-by-the-executive-director-48636/index.md)
- [Structured JSON version](/en/publications/cr/issues/2019/09/03/maldives-2001-article-iv-consultation-staff-report-and-statement-by-the-executive-director-48636/index.json)
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## Bibliographic details
- Published: September 3, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513512433.002

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### Economic context and structural features
- 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."

### Recent performance, imbalances, and monetary developments
- 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.

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

### Subjects and keywords (as listed)
- 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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## Content in this bundle

- **Introduction and Background**
  - [Introduction and Background (Markdown version)](/-/media/files/publications/cr/2019/1mdvea2019004.pdf.md){rel="alternate" type="text/markdown"}
  - [Introduction and Background (PDF)](/-/media/files/publications/cr/2019/1mdvea2019004.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2019/09/03/maldives-2001-article-iv-consultation-staff-report-and-statement-by-the-executive-director-48636_