Opposition leader and Maldivian Democratic Party (MDP) chairperson Fayyaz Ismail on Monday accused the Mohamed Muizzu administration of forcing the central bank to print money through what he described as a “devious” transaction structured to bypass accountability.
In a post on X, Fayyaz said the government was compelling Maldives Monetary Authority (MMA) to monetise fiscal expansion after “gross mismanagement” of state finances.
“It’s no surprise that the government is forcing MMA to monetize fiscal expansion,” Fayyaz said. “I have stated previously that, despite their claims, this government would have no choice but to print money due to gross mismanagement.”
He alleged that the decision followed “opaque transactions involving state-owned banks, the Sovereign Development Fund, and ‘investments’ or contracts made by SOEs that have crippled their balance sheets.”
Fayyaz said what was being carried out “appears to be, without doubt, Quantitative Easing, which is essentially printing money.” He added that the government was involving Maldives Pension Administration Office (MPAO) to classify the move as an “investment arrangement” and avoid political responsibility.
“This puts the integrity of the Maldives Retirement Pension Scheme at risk, and, when the Pension Fund is compelled to be involved in such an act, one could only imagine the extent to which this government is willing to fall,” he said. “This government is not only printing money; it is endangering the retirement security of thousands of Maldivians and eroding trust in the system meant to ensure their social welfare.”
The former economic minister urged the administration to submit any decision to print money to Parliament and allow public scrutiny. “Instead of using such devious and destructive means, the government should acknowledge that Muizzu has reneged on his dubious pledge in the first place,” he said.
He called on the government to ensure transparency about the implications of the move, including potential depreciation of the Maldivian Rufiyaa, inflation, and weakening purchasing power.
The government and MMA have so far not commented on the allegations.