Gov’t cornered as economic options run dry, prepares to print about MVR 15bn

President Dr. Mohamed Muizzu's administration has prepared to print and release MVR 14.7 billion into the economy.

According to reliable sources, the Maldives Monetary Authority (MMA) has decided to release money into the economy by conducting a transaction to purchase 22 hectares of land from the properties of Housing Development Corporation (HDC).

A financial expert highlighted that it is dangerous for a state institution, which is legally responsible for regulating money, maintaining and implementing financial policies, and should work independently, to participate in such irresponsible financial activities conducted by the government instead of fulfilling its responsibility.

The individual questioned what the central bank is attempting to do by spending billions to buy large plots of land, and described MMA as an institution entrusted with regulating financial matters.

Is MMA an entity that runs housing projects? Is it a real estate business? Or is it a room rental service? What they are actually doing in the name of land purchase is printing money. They are conducting this land purchase transaction through HDC to directly put that money into the government's hands "

A financial expert.

It is understood that MMA’s Board of Directors has already made this decision at the direction of President Muizzu.

Since HDC is a 100 percent government-owned company, the money given by MMA to HDC can be taken by the Ministry of Finance for government needs. This money can be brought into the government treasury as advance dividends or through the purchase of T-bills or bonds from the Finance Ministry.

The expert went on to stress that releasing such a large amount of money into the economy will cause a huge shock to the economy, the value of the Maldivian rufiyaa will fall, and the dollar rate will skyrocket.

He said there is a risk that prices of goods could rise to unprecedented levels as a result of this.

It is understood that the government is trying to obtain money through MMA in this manner because of the failure to implement the measures set to raise funds for this year's approved budget. This includes not receiving grants and an unforeseen drop in revenue.

After criticizing the previous administration, Muizzu has on multiple occasions across various platforms, asserted that he would govern without printing more money.