Maldivian Democratic Party (MDP) President Abdulla Shahid has strongly criticized the government’s decision to print MVR 15 billion, calling it reckless and a violation of financial laws.
In a post on X, Shahid claimed that the Maldives Monetary Authority (MMA) is printing money to buy land, contradicting the advice of the International Monetary Fund (IMF), the World Bank, and economic experts. He warned that this move would fuel inflation, devalue the Maldivian Rufiyaa (MVR), and destabilize the economy at a time when fiscal consolidation and monetary tightening are urgently needed.
Shahid cautioned that ordinary Maldivians would bear the consequences of this policy through rising prices of food, fuel, and essential goods, as well as a weaker MVR making it harder to obtain US dollars. He further warned that, in the long run, the country could face higher taxes and cuts to public services.
He accused the government of resorting to desperate measures due to its failed foreign policy and inability to secure external financing. Shahid also criticized the MMA for engaging in real estate acquisitions, arguing that it has no mandate to do so.
Additionally, he stated that the move violates both the Monetary Authority Act and the Fiscal Responsibility Act, calling it a blatant misuse of central bank authority. He urged for an immediate halt to the plan, warning that it could push the economy toward long-term instability and crisis.
The government and the MMA have yet to respond to these allegations.
In a post on X, Shahid claimed that the Maldives Monetary Authority (MMA) is printing money to buy land, contradicting the advice of the International Monetary Fund (IMF), the World Bank, and economic experts. He warned that this move would fuel inflation, devalue the Maldivian Rufiyaa (MVR), and destabilize the economy at a time when fiscal consolidation and monetary tightening are urgently needed.
Shahid cautioned that ordinary Maldivians would bear the consequences of this policy through rising prices of food, fuel, and essential goods, as well as a weaker MVR making it harder to obtain US dollars. He further warned that, in the long run, the country could face higher taxes and cuts to public services.
He accused the government of resorting to desperate measures due to its failed foreign policy and inability to secure external financing. Shahid also criticized the MMA for engaging in real estate acquisitions, arguing that it has no mandate to do so.
Additionally, he stated that the move violates both the Monetary Authority Act and the Fiscal Responsibility Act, calling it a blatant misuse of central bank authority. He urged for an immediate halt to the plan, warning that it could push the economy toward long-term instability and crisis.
The government and the MMA have yet to respond to these allegations.
