Maldives central bank's deputy governor Imad quits
Imad's resignation comes as the parliament's finance committee had recommended his removal.
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Ahmed Imad on Monday announced his resignation as Deputy Governor of the Maldives Monetary Authority (MMA), citing recent decisions that, in his view, do not align with the institution’s core objectives.
Imad's resignation comes as the parliament's finance committee had recommended his removal.
"After careful consideration, I have stepped down from my position as Deputy Governor of the Maldives Monetary Authority (MMA) due to recent decisions that, in my view, do not align with the institution’s core objectives. It has been an honour to serve in this role and contribute to the country's economic and financial stability," Imad stated.
Reflecting on his tenure, Imad highlighted his role in addressing economic crises, implementing foreign exchange market reforms, and strengthening financial sector resilience. His contributions also included the development of the instant payment system (FAVARA), financial inclusion initiatives, regulatory reforms in the foreign currency market, and efforts in sustainable finance. A key milestone, he noted, was the completion of the National Sustainable Financing Roadmap, which provides a framework for integrating environmental, social, and governance (ESG) principles into the financial sector.
Imad further outlined advancements in the institution, including the establishment of a Data Analytics Group aimed at fostering a data-driven culture, the development of a regulatory sandbox, and the creation of a Fintech Innovation Hub to support digital transformation in the financial sector. He emphasised the importance of monetary policy measures and regulatory interventions during the COVID-19 pandemic in maintaining macroeconomic stability and financial sector resilience.
He also noted that the Foreign Currency Swap facility was instrumental in addressing short-term foreign currency liquidity needs for both the banking sector and the government. However, he pointed out that the withdrawal of monetary policy easing took longer than expected due to weak fiscal conditions and delays in necessary government expenditure reforms.
Imad stated that while the economy is currently experiencing strong real sector performance, challenges remain in the fiscal and external sectors, with significant external debt affecting macroeconomic stability. He highlighted risks posed by the high sovereign-bank nexus and called for prudential regulatory measures to reduce the banking sector’s exposure to the government. He stressed the necessity of maintaining a tight monetary policy stance to defend the exchange rate peg and the importance of fiscal consolidation to avoid monetary financing and ensure long-term stability.
"In light of current economic conditions, further monetary financing could have serious macroeconomic implications, leading to exchange rate and inflationary pressures, and jeopardise the MMA’s monetary policy objectives and independence. I urge the administration to prioritise fiscal discipline, safeguard the MMA's autonomy, and implement prudent measures to ensure macroeconomic stability," he stated.
