The main oppositions Maldivian Democratic Party (MDP) has strongly condemned the government’s recent move to print MVR 2.5 billion through the Maldives Monetary Authority (MMA), calling it an illegal, reckless and unprecedented abuse of the country’s financial systems.

In a strongly worded press statement, the main opposition party criticized the administration for attempting to channel the newly printed funds through the Pension Fund, an act MDP has described as a violation of longstanding financial principles and procedures that govern pension investments in the Maldives.

According to the main opposition party, the central bank is leading this operation to divert funds from the Pension Fund to the government, bypassing established safeguards and avoiding proper investment protocols. The party warns that this signals a collapse of regulatory discipline and an erosion of public trust in key financial institutions.

MDP emphasized that printing money was a red line clearly drawn during President Dr. Mohamed Muizzu’s campaign, where he repeatedly pledged not to rely on borrowing or money printing to manage state finances. The party notes that the president had claimed the government earns sufficient monthly revenue to sustain its operations without resorting to debt or inflationary measures.

MDP argued that in contrast, the government’s current approach reflects deep financial mismanagement. The party attributes this shift to the administration’s inability to secure external financing, the drying up of domestic funding sources and the exhaustion of revenue streams from state-owned enterprises and banks.

While advances from the central bank were utilized during the Covid-19 pandemic under legal provisions for national emergencies, MDP stressed that no such extraordinary circumstances exist today. The move to print money, the party argues, not only violates the legal framework but also contradicts the 2025 state budget passed by the People’s Majlis and MMA’s own monetary policy announced just two months ago.

MDP further states that the administration’s decision appears unplanned, ad hoc and lacking any coherent policy direction. The party has explicitly rejected the participation of MMA board members and Pension Fund board members in what it characterizes as a blatantly illegal operation.

Beyond legal and procedural concerns, MDP has warned of severe economic consequences. It forecasts that printing such a large sum will devalue the Maldivian Rufiyaa, drive up foreign currency exchange rates and trigger sharp inflation in the prices of goods and services, putting additional strain on ordinary citizens already facing high living costs.

MDP has demanded an immediate halt to the money printing initiative and urged the government to stop misusing official systems to finance its operations through unsanctioned and economically destabilizing means.