Maldives lacks independent central bank, gov’t controls MMA: Ameer

Former Minister of Finance Ibrahim Ameer has stated that the Maldives Monetary Authority (MMA) has lost its independence, that there is currently no independent central bank in the Maldives and that the government controls MMA.

Ameer has made these remarks at a time the government has decided to inject money into the Maldives’ economy through the central bank. This is planned to be done through a transaction where MMA will purchase 22 hectares of land from assets of the Housing Development Corporation (HDC).

Speaking at a press conference held by the main opposition Maldivian Democratic Party (MDP) on Monday in relation to the decision, the former finance minister said that at this time, the central bank should be implementing a contractionary monetary policy, which is to gradually reduce the money supply. However, stressing that the transaction is doing the opposite of this policy, Ameer said this is something that the central bank should not do at this time as it is inconsistent with the country's economic situation.

Highlighting that MMA is financing for the government's political purposes, Ameer said that it is financing to implement the presidential manifesto, and that financial sector stability will be lost. Ameer stressed this is contrary to the objectives of MMA.

In addition to this, the former finance minister said that MMA's Board of Directors should resign because they cannot work independently and are forced to do things contrary to their objectives.

Since MMA has no financial independence, I am now calling on those who are on the MMA board independently, as well as other management, if they cannot work, they need to resign right now. Otherwise, in the future, when the country's economy is exposed to great danger, we will always note that these decisions were made and these things were done while these people were on the board. I am now calling on those on the MMA board to resign if they cannot work independently.”

Former Finance Minister Ibrahim Ameer.

Ameer said that if MMA works within this principle, it could also invest in developing Fushidhiggaru lagoon, Addu bridge, and the tunnel that President Dr. Mohamed Muizzu promised he would build.

The former finance minister went on to note that according to the Constitution of the Republic of Maldives, MMA has two tasks, which are to maintain price stability and economic stability. However, Ameer has stressed that this policy has been abolished by the incumbent.