The IMF, a global watchdog of exchange rates and inflation, last week advised the Maldives to cut the budget deficit to avoid higher inflation and a currency collapse. However Maldives has dismissed the warning.
"I give you my word the Maldivian Rufiyaa will not be devalued," Finance Minister Gasim told journalists, Minivannews.com, an independent news service in the island reported. The press conference was called following the release of an IMF statement.
The Maldivian rufiyaa is pegged to the US dollar at 12.8.
IMF said it did not have enough data to determine whether the "exchange rate is in fundamental misalignment," which is usually done by working out the infl