News Desk
MALÉ — Former Finance Minister Ibrahim Ameer has launched a sharp critique of the current administration, accusing it of printing 6.2 billion Rufiyaa through a “backdoor” mechanism in direct violation of the Fiscal Responsibility Act, despite repeated pre-election pledges to halt the practice.
In a statement posted to social media, Ameer claimed that the Maldives Monetary Authority (MMA) has already channelled 3.8 billion Rufiyaa to the government through commercial banks. He alleged that total monetary financing is set to reach 6.2 billion Rufiyaa by bypassing statutory limits.
According to the former minister, the administration orchestrated the arrangement by having the central bank purchase 2.4 billion Rufiyaa in Treasury bills previously held by the pension fund, thereby routing funds back into government debt instruments. He argued that this maneuver breached the central bank’s mandate and compromised pension fund investment rules.
“Despite coming to power on a promise not to print money, this administration is funneled 6.2 billion Rufiyaa through the back door via the MMA, completely defying the spirit of the Fiscal Responsibility Act,” Ameer stated.
The opposition official contrasted the current fiscal expansion with the circumstances faced by the previous Maldivian Democratic Party (MDP) administration, which resorted to deficit monetisation during the height of the COVID-19 pandemic. During that period, state revenues fell by 30 billion Rufiyaa, and national output dropped significantly due to border closures and global travel restrictions.
Ameer noted that the current government is expanding the money supply even in the absence of a health or economic crisis, with state revenues projected to reach 40 billion Rufiyaa and international borders remaining fully open. He claimed the current administration has already monetised roughly 78 percent of the total amount printed during the pandemic years under transparent, legally sanctioned emergency provisions.
Furthermore, data cited in the statement indicate that broad money supply within the economy has expanded by 32.5 percent, while central bank placements in commercial banks have climbed to 3.84 billion Rufiyaa, primarily directed toward acquiring government treasury securities.
Money printing became a central political flashpoint during the economic fallout of the pandemic, drawing heavy criticism from opposition figures at the time. President Dr Mohamed Muizzu’s administration came to power on a platform explicitly committing to end deficit financing through the central bank, with government officials previously arguing that halting the practice averted a severe currency collapse and sovereign bankruptcy.
