Parliament rejects opposition resolution on money printing
The resolution, moved by MP Shamheed on 10th March, was rejected with 46 votes against and 10 in favour.
Parliament on Monday rejected a resolution presented by opposition MDP MP Ahmed Shamheed, which sought clarification on the Maldives Monetary Authority (MMA)'s decision to print money and hold the ruling party accountable for its financial decisions.
The resolution, moved by MP Shamheed on 10th March, was rejected with 46 votes against and 10 in favour.
The resolution aimed to address concerns regarding the MMA's decision to purchase land in Hulhumale, with the intention of using the transaction to facilitate payments to the government through the Housing Development Corporation (HDC).
In the resolution, Shamheed argued that there was no legitimate reason for the MMA to acquire more land and buildings than necessary for its operations. He raised concerns about hidden factors influencing the decision to conduct the transaction, suggesting that the MMA's actions might violate the State Fiscal Responsibility Act by withdrawing money from the government.
Shamheed also stated that this move could undermine the MMA’s independence and damage the public’s confidence in the financial system of the Maldives. He pointed out that the Finance Ministry had previously stated that funds for the state budget would be raised without the need for parliamentary approval, which, according to Shamheed, contradicted the government’s actions.
The resolution further warned that such actions could lead to the depreciation of the Maldivian Rufiyaa and the appreciation of foreign exchange, which might result in adverse economic effects for the country and its citizens.
During the debate, opposition MPs accused the government of attempting to deceive the public by printing money and compromising the independence of the MMA. They expressed concerns about the potential consequences of such decisions on the country's financial stability.
However, ruling PNC members responded by asserting that the government had no intention of printing money. They emphasised that if money printing were to occur, it would be done transparently and with parliamentary approval.
