The Maldivian government, led by President Muizzu, is planning to raise around MVR 15 billion by selling a large plot of land in Hulhumale’ to the Maldives Monetary Authority (MMA). This news, confirmed by reliable sources, has sparked worry and confusion. During his 2023 campaign and even after taking office, Muizzu promised he would never print money—a tactic used by the previous government during the Covid-19 crisis. He called avoiding this one of his biggest wins. But now, it looks like his administration might be bending that promise in a sneaky way, and it could hurt the country and its people badly.
The Land Sale: A Hidden Money-Printing Trick?
The plan is simple: sell a big piece of land managed by the Housing Development Corporation (HDC) to the MMA for MVR 14-15 billion. President Muizzu told lawmakers from his party, the People’s National Congress (PNC), that this isn’t “printing money.” But experts disagree. Printing money doesn’t just mean making new cash—it’s when the government borrows from the central bank (like the MMA) to pay its bills instead of raising taxes or selling bonds to regular investors. Selling land to the MMA, which is basically part of the government, looks like a clever way to get cash without calling it what it is: monetary financing. This raises a big question—why make such a loud promise only to find a loophole?
Why This Matters: Debt and Desks
The Maldives is drowning in debt—USD 800 million (around MVR 12-13 billion) needs to be paid back this year alone, including USD 150 million by the end of March 2025. Some experts think this land sale is a desperate move to cover these payments. The 2025 budget is MVR 56.6 billion, with plans to save MVR 7.7 billion by cutting costs. But here’s the problem: the government isn’t cutting spending as much as it promised. International groups have warned Maldives to stop overspending, but it seems the administration is digging a deeper hole instead of climbing out.
The Bad Impact: Inflation and Suffering
If the government pumps MVR 15 billion into the economy this way, it could cause big trouble. Former President Mohamed Nasheed, from the opposition, warns that flooding the market with money will make the US dollar rate jump—maybe even past MVR 24. Right now, the official rate is around MVR 15.42, so that’s a huge leap. When the dollar gets expensive, everything imported—like food, fuel, and clothes—costs more. This is called inflation, and it hits regular people the hardest. Wages won’t rise as fast as prices, so families will struggle to buy basics. The opposition party, MDP, says citizens will suffer, and they’re right to worry.
Hypocrisy and Broken Trust
Muizzu’s PNC slammed the last government for printing MVR 8 billion during Covid-19, saying it was reckless. That move happened when tourism—the country’s lifeline—stopped, and airports shut down. The MDP says they had no choice. Now, Muizzu’s team is doing something similar but pretending it’s different. This flip-flop makes people doubt the government. If leaders can’t keep their word, why should anyone trust them? Neither the administration nor the MMA has said anything official, leaving rumors to spread on social media and adding to the confusion.
What’s the Fix?
Nasheed says the government should focus on “fiscal consolidation”—cutting spending and balancing the budget the hard way, not relying on tricks like this land sale. International warnings back this up. But instead of listening, the administration seems ready to risk inflation and more debt. This isn’t just bad planning—it’s putting the country’s future in danger for a quick fix. President Muizzu’s land sale plan looks like a broken promise dressed up as smart policy. It might raise cash now, but the cost could be skyrocketing prices, a weaker economy, and suffering for everyday Maldivians.
