Parliament Rejects Resolution Over Money Printing Concerns Amid Criticism from Opposition MPs

Opposition members of parliament criticised the government yesterday over concerns surrounding alleged plans to print money and questioned the independence of the Maldives Monetary Authority (MMA). The debate was sparked by a resolution presented by Hulhumale South MP Ahmed Shamheed, which was ultimately rejected by parliament.

The resolution, moved on 10 March by opposition Maldivian Democratic Party (MDP) MP Ahmed Shamheed, sought clarification on the government’s financial practices, specifically the MMA’s involvement in a planned land transaction with the Housing Development Corporation (HDC). The proposal aimed to hold the ruling People’s National Congress (PNC) accountable and to address growing concerns over the central bank’s role in what opposition MPs described as an opaque financial manoeuvre.

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During the parliamentary debate, opposition MPs accused the government of attempting to mislead the public and circumvent legal procedures by financing state obligations through indirect money printing. MP Shamheed raised concerns about the government’s decision to facilitate a MVR 15 billion payment to HDC through the transfer of assets and balance sheet adjustments at the MMA. He argued that such actions amounted to printing money and warned of the economic risks, including rising inflation and currency devaluation.

According to Shamheed, a resignation letter from a former deputy governor of the MMA had indicated intentions to print money. He claimed the government was trying to fund land transactions without adequate funds, using state-owned assets as a financial workaround. He further stated that the MMA did not hold sufficient reserves to make such a large payment, suggesting the transaction would result in artificially inflating the central bank’s balance sheet.

Opposition MPs, including Mauroof Zakir and Meekail Ahmed Naseem, echoed these concerns. Zakir argued that the MMA was being politicised and used to finance government activities without proper oversight. He warned that this set a dangerous precedent that could erode public trust in financial institutions. Naseem, referencing previous instances where money printing had been used during economic emergencies, criticised the current administration’s handling of the MMA and highlighted the potential long-term consequences, such as currency depreciation and weakened credit ratings.

In defence, ruling PNC MPs, including Mohamed Musthafa Ibrahim, Ibrahim Didi and Parliamentary Group Leader Ibrahim Falaah, rejected the accusations. They asserted that the government had no intention of printing money without parliamentary consent and stressed that any such move would be made transparently. Falaah dismissed the resolution as baseless and said it was built on inaccurate assumptions about the government’s financial strategy.

Despite concerns raised by both sides of the aisle about the implications of the MMA’s planned MVR 14 billion land purchase from HDC, the resolution was rejected by parliament with 46 votes against and only 10 in favour.

The resolution argued there was no legitimate reason for the MMA to acquire additional land beyond its operational needs. Shamheed warned that the transaction could violate the State Fiscal Responsibility Act and damage the central bank’s autonomy. He also highlighted conflicting statements from the Finance Ministry, which had previously claimed that state budget financing would not require parliamentary approval.

The opposition maintained that the government’s financial decisions could result in a depreciation of the Maldivian Rufiyaa and an appreciation of foreign currencies, potentially triggering broader economic instability. However, the government reiterated its commitment to maintaining transparency and ensuring that any extraordinary financial measures would be undertaken with parliamentary oversight.