Even if President Muizzu wishes to do so, he cannot withdraw funds from the Maldives' usable reserves at his own discretion: MP Shamheed

Dr. Ahmed Shamheed, the Member of Parliament for the South Hulhumale' constituency, has stated that President Dr. Mohamed Muizzu cannot withdraw funds from the Maldives' usable reserves at his own discretion. He further emphasized that the government must disclose full details of the state's total revenue from the past year to the public.

Speaking on RaajjeTV’s "Fala Surukhee" program, MP Shamheed highlighted the current state of the Maldives' economy and expressed his concerns regarding its trajectory.

Highlighting that the current administration is responsible for the country’s economic situation, MP Shamheed stated that the state received the necessary US dollars to settle loan repayments due this year and last year following amendments to the tax system and foreign currency exchange regulations. He further noted that the foreign currency inflow last year exceeded the 2024 figures by approximately $800 million.

However, MP Shamheed stated that the whereabouts of these funds remain unknown and asserted that the government must clarify to the public what happened to the money. He further alleged that after utilizing these funds for other purposes, the government is now seeking alternative means to settle the loan repayment due this April.

Referring to President Muizzu’s statement that the gross reserves stand at $1.27 billion, MP Shamheed noted that once debts are settled from the gross reserves, the usable reserves diminish significantly. He expressed skepticism regarding the feasibility of utilizing the remaining reserves for loan repayments, adding that even if President Muizzu intended to withdraw these funds, such an action would not be permissible.

Looking at the current situation, the President noted that while the gross reserve still holds approximately one billion, there are immediate debt obligations amounting to over $800 million. Consequently, the usable reserve remains very low. These funds are typically required for importing essential food items, and with rising oil prices, additional foreign exchange is needed monthly to cover fuel costs. Therefore, it is unlikely that the remaining reserves can be utilized for loan repayments. Furthermore, the Maldives Monetary Authority (MMA) would not authorize such a move. The MMA is legally mandated to maintain a specific level of reserves to safeguard the public interest. The reserve cannot be depleted simply at the President's discretion, as a portion of those funds belongs to the people. Thus, the MMA is obligated to retain those funds; they are not intended for debt settlement, although a small fraction could potentially be drawn upon.

Dr. Ahmed Shamheed, Member of Parliament for the Hulhumalé South constituency.

Regarding the Sovereign Development Fund (SDF), MP Shamheed noted that President Muizzu stated in his Presidential Address that the fund held $150 million. However, he questioned how that figure surged to $320 million just a few weeks later. He emphasized that the public deserves a clear explanation regarding this discrepancy.

Statistics indicate that only $18 million has been added to the Sovereign Development Fund (SDF) this year. The origin of the remaining $200 million to $250 million remains unclear. Furthermore, those funds consist of assets that were already converted and held in the SDF during the MDP administration. Therefore, it appears that any increase in dollar reserves resulted from converting Maldivian Rufiyaa back into dollars within the fund. Consequently, this cannot be viewed as new revenue generated by the current government.

Dr. Ahmed Shamheed, Member of Parliament for the Hulhumalé South constituency.

MP Shamheed stated that the current administration is making significant efforts to mislead the public regarding the country's debt obligations and economic affairs. However, he noted that today's citizens are well-informed and fully aware of the true state of the economy.