Opposition MPs criticise 'money printing', MMA's role

Opposition MPs in parliament on Monday criticised the government for attempting to print money and questioned the independence of the Maldives Monetary Authority (MMA).

Hulhumale South MP Ahmed Shamheed presented a resolution aimed at clarifying the government's actions regarding money printing. The resolution sought to hold the ruling party accountable and address concerns over the MMA's role in financial matters.

During the debate, opposition MPs accused the government of trying to deceive the public. Shamheed claimed that MDP members in the Finance Committee attempted to clarify the situation, but the truth remained unclear due to the lack of agreement from the ruling PNC members.

Shamheed said that the former deputy governor of the MMA had been about to be dismissed, and a resignation letter indicated plans to print money. He suggested that the government was attempting to pay for land transactions with money it did not have.

"The MMA doesn't even have MVR 3 billion in its balance sheet, so how can we pay MVR 15 billion to the HDC? If we do, all we have to do is print more money," he said.

He explained that the process would involve transferring MVR 15 billion worth of assets to the HDC and creating an entry in the MMA’s balance sheet, which he described as “printing money.” Shamheed added that the government was attempting to pay off its debt by using state assets in this way.

PNC MPs, including MP Mohamed Musthafa Ibrahim and MP Ibrahim Didi, responded by stating that the government had no intention of printing money and would only consider it with parliamentary approval. They reiterated the government’s stance on not printing money and emphasised the need for transparency in financial matters.

MDP MP Mauroof Zakir expressed concern that the government was politicising institutions responsible for monetary and fiscal policy. He warned that the MMA was being used as a tool to finance government activities without parliamentary involvement, which he considered a dangerous precedent. Zakir accused the government of using land transactions to disguise the act of printing money.

Shamheed argued that printing money without parliamentary approval was illegal and undermined the independence of financial institutions. He warned that such actions would lead to economic instability, including rising commodity prices and a decline in the value of the local currency.

MP Meekail Ahmed Naseem of the MDP recalled a past situation in which the government had printed money to stabilise the economy, but expressed concern over the current government's handling of the MMA and the economy. He stressed that the MMA’s actions could have long-term consequences, such as a weakened currency and reduced credit ratings.

In response, PNC Parliamentary Group Leader Ibrahim Falaah dismissed Shamheed’s resolution, claiming it was based on false assumptions. He reiterated that the government would not interfere in the MMA’s operations and would seek parliamentary approval for any money printing.

The MMA is currently set to pay MVR 14 billion to the HDC to purchase land from Hulhumale, a move that has raised concerns among both opposition and ruling party members regarding its potential impact on the country’s financial stability.