Money creation not an option to save economy, pres insists
After completing his visits to five islands in Raa atoll and four islands in Baa atoll, President Muizzu returned to the capital on Monday evening.
By
Aishath Fareeha Abdulla
Printing money to save the economy is not an option, President Mohammed Muizzu insisted on Monday.
During his visit to Baa atoll, the President condemned printing money to climb out of the dire economic situation while he was speaking to the people of B. Kendhoo. The President said that money printing should not be done at all.
The government was allowed to print up to MVR 4.4 billion a year by suspending the implementation of Article 32 (a, d, e) of the Public Expenditure Accountability Act from 26 April 2020 due to the sharp decline in state revenue following the Covid-19 pandemic.
After that:
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The permission has been extended twice by parliament
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Finally, in 2021, the parliament had capped the amount of printed money up to MVR 2.2 billion; the permit has been extended every year since then
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Of the amount printed so far, MVR 4.2 billion has been converted into long-term bonds
Within the first month of this government, the printing of money was put an end to. Last December, in a letter signed by the Finance Minister, Dr Mohammed Shafeeg asked the Parliament to end the exemption of Article 32 (a, d, e) of the Public Expenditure Accountability Act from the first day of this year and fully restore the Act.
Speaking in Kendhoo, the President said that printing money is not in the interest of the people.
"Printing money is not an option if you want to save the economy of this country. It should not have been done. If you want to do something for the good of the people with sincerity, it should not be done," he said.
The President said the government is working to stop printing money, strengthen state-owned companies, strengthen corporate governance and increase revenue generation.
“We are increasing and expanding the revenue streams for our country and the economy,” he said.
The President said the government is working to expand tourism, construction and fisheries sectors.
"Complete airport projects, open the airports. This is why we are giving priority for such projects. These efforts are being made through this path so that we can move forward at a faster pace and settle the debts we owe economically. To bring such strength, such stamina," he said.
The International Monetary Fund (IMF) has welcomed the new government’s fiscal reform agenda.
"So we are taking the best path. There are days ahead when the results will be positive," he said.
After completing his visits to five islands in Raa atoll and four islands in Baa atoll, President Muizzu returned to the capital on Monday evening.
According to the President's Office, the President aims to visit all inhabited islands at least twice during this term.
