Former President Mohamed Nasheed has criticised the Maldives Monetary Authority’s (MMA) decision to print nearly MVR 15 billion, warning that it could push the US dollar exchange rate above MVR 24—an unprecedented high—and fuel inflation.
In a post on X, formerly known as Twitter, Nasheed described the central bank’s move as “monetisation in disguise” and a direct contradiction to the government’s commitment to fiscal consolidation.
“The MMA, the country’s central bank, purchasing real estate under the guise of developing a financial centre is not only highly irregular but also a significant departure from the government’s pledges to implement fiscal consolidation measures as recommended by the IMF,” he wrote.
Multiple sources have confirmed that the MMA board has approved issuing MVR 15 billion to finance the purchase of 20 hectares of land in Hulhumalé’s Urban Isle. The central bank has yet to make a formal statement, and Gov. Ahmed Munawwar has not responded to media inquiries. The Housing Development Corp. (HDC), which oversees state-owned land and housing projects, has also remained silent.
Economic experts warn that while the transaction is being framed as a financial strategy rather than a direct cash injection, the effects will mirror those of printing money. Analysts caution that the increased money supply could lead to a sharp devaluation of the Maldivian Rufiyaa, potentially pushing the black market dollar rate beyond MVR 24 for the first time.
The decision follows an emergency Economic Council meeting held on an official holiday, though the government has not disclosed its agenda. It also comes less than a month after the International Monetary Fund urged the Muizzu administration to implement immediate fiscal reforms, including cutting costs and halting non-essential projects.
Despite President Mohamed Muizzu’s previous pledge not to print money under his administration, his government has yet to comment on the matter.