The opposition Maldivian Democratic Party (MDP) has strongly condemned the government’s move to print MVR 2.5 billion through the Maldives Monetary Authority (MMA), calling it an illegal, reckless, and unprecedented misuse of the country’s financial system.
MDP accused the government of trying to route the newly printed money through the Pension Fund a move the party says clearly violates long-established financial rules and pension fund policies.
According to MDP, the central bank is being used to divert funds from the Pension Fund to the government, bypassing safeguards and proper investment procedures. The party warned that such actions could destroy public trust in key financial institutions and mark a collapse of regulatory discipline in the country.
MDP also reminded the public that President Dr. Mohamed Muizzu had clearly promised during his campaign that he would not print money or borrow to run the government. At the time, Muizzu had claimed the government was earning enough monthly revenue to manage its expenses without taking on new debt or triggering inflation.
Former Foreign Minister Abdulla Shahid criticized the move on X (formerly Twitter), saying it has no justification and poses serious risks. “It may fuel inflation, devalue the Rufiyaa, and increase demand for US dollars, ultimately hurting the economy,” Shahid warned.
MDP’s Chairperson and former Economic Minister Fayyaz Ismail also accused the government of forcing the MMA to print money due to poor management. He said the government has run out of funds after mishandling public money through state-owned banks, the Sovereign Development Fund, and SOEs. “This is exactly what we warned would happen,” he said.
The party noted that during the Covid-19 pandemic, money printing was allowed under emergency laws but no such emergency exists now. MDP said this latest move breaks the law, goes against the 2025 state budget passed by the parliament, and contradicts the MMA’s own monetary policy announced just two months ago.
Calling the government’s decision “unplanned and chaotic,” MDP said that both MMA and Pension Fund board members should refuse to take part in what it described as an illegal and dangerous operation.
Economic Impact
Economists warn that printing MVR 2.5 billion could have serious effects on the Maldivian economy. Increasing the money supply without real economic growth usually leads to inflation, where prices of goods and services rise quickly. This means the cost of living for ordinary citizens will go up food, rent, and basic needs could all become more expensive.
The value of the Maldivian Rufiyaa could also weaken, making imported goods costlier and increasing the demand for US dollars. Businesses might struggle to pay for imports, while the government could face higher costs for foreign debt repayments.
Experts further warn that inflation will reduce the purchasing power of salaries and savings, putting more pressure on households already facing financial difficulties. It could also damage investor confidence, making it harder for the Maldives to attract foreign investment or secure international loans in the future.
