Uchchu: Fixing USD crunch requires extending presidential term to 10 years

Business tycoon Champa Mohamed ‘Uchchu’ Moosa believes that fixing the US dollar crunch facing the Maldives requires extending the presidential term from the current five to 10 or even 15 years – an opinion that he acknowledges might anger some.

The Maldives, despite generating billions in USD revenue each year from its booming tourism industry, faces a severe USD crunch, pushing black market rates up to over MVR 20.

In an appearance on an episode of the Spot On! podcast series released by Dheno? via its YouTube channel on Wednesday, Uchchu said the USD crunch remains unresolved because presidents have to “do too much in too little time.” He said that the pressure to get things done in a short period of time leads to presidents taking loans, which he believes is pushing up the USD rate.

“What I know is it rains dollars in the Maldives. By global standards. This is something everyone must acknowledge,” he said.

Uchchu said that people living in islands across the Maldives all have a lot of things they want. He said that all these are costly endeavors that presidents cannot pay out of their own pockets.

“Whether people admit this or not, the loans are being taken because that’s what the people want. Because [the president] needs to do these things for them. The loans need to be taken in USD for all this. And another major reason is, this country is large. It’s not small. It’s just that the islands are scattered. A five-year presidential term is too short for a large country like Maldives,” he said.

 Uchchu said that it takes a lot of effort from presidents to get things done.

He believes that presidents need space to do things more “comfortably” in order to resolve the USD crunch.

“It takes a lot of effort to get things done. Therefore, the term is too short for presidents. Regardless of who they are. A leader needs at least 10 or 15 years to get things done,” he said.

Uchchu said that the USD rate will not go down for as long as presidents rush to deliver pledges during a five-year term.

“Every island wants an airport. Every island needs to have everything they want fulfilled. So, the term is too short for the president who takes office. In my opinion,” he said.

“They just need to get their hands on dollars however they can.”

Uchchu believes that extending the presidential term to 10 or 15 years is the solution not just to the USD crunch, but to “everything”.

He believes the current USD crunch is also the result of having incurred too much foreign debt in order to get things done over a short period of time. Uchchu believes that longer presidential terms will ease the demand for USD.

Uchchu, who entered business some 50 years ago with a small shop he opened in Male’ as a young boy, is now one of the most powerful businessmen in Maldives, owning 11 resorts in the Maldives and some outside. His contributions to the Maldivian economy have earned him multiple accolades.

He is also known for his philanthropy.