Foreign reserve US$250 million on Gayoom’s departure, Mundhu tells Asian Tribune

“When the IMF recommended cutting down on public servants, President Nasheed went ahead with slashing the number of civil servants. At the same time Nasheed continued appointing endless political appointees and state ministers. If Nasheed thinks it will be all hunky dory in three months time just because he implemented a managed float of the rufiyaa, he is mistaken. He does not understand the dynamics of economics,” Mundhu told journalist Poorna Rodrigoo.

He blamed the dollar shortage on “businessmen holding large amounts of money abroad”, and noted that the economic uncertainty had led to “many Sri Lankan businessmen having second thoughts over investing here and Lanka appears a better investment than the Maldives for foreign investors.”

Ruling Maldivian Democratic Party (MDP) MP Ilyas Labeeb, on parliament’s Public Accounts Committee, meanwhile recently contested that figures from the Maldives Monetary Authority (MMA) showed that US$104.6 million was transferred out of the Maldives in 2008, the year of the election, compared to US$30-40 million in 2005-2007.