The Maldives Monetary Authority (MMA) has reportedly decided to print nearly MVR 15 billion, the highest amount in the nation’s history, despite President Mohamed Muizzu’s earlier pledge not to print money under his administration.
According to multiple sources, the MMA board has approved the issuance of MVR 15 billion to purchase 20 hectares of land from Urban Isle in the second phase of Hulhumalé. The central bank has yet to issue a formal statement, and Governor Ahmed Munawwar has not responded to calls from the media.
The Housing Development Corporation (HDC), which manages state-owned land and housing projects, has also remained silent on the matter. However, sources within both the MMA and HDC confirmed that the move is an attempt to stabilise the government’s deteriorating financial situation rather than a direct cash injection. Experts warn, however, that this strategy is effectively no different from printing money and could lead to a sharp devaluation of the Maldivian rufiyaa (MVR).
With the MMA transferring the funds to HDC’s bank account, analysts say banks will see a significant increase in their lending capacity. The government is expected to take advantage of this by selling bonds to banks to ease borrowing costs.
The decision follows an emergency meeting of the Economic Council on Saturday, which was held on an official holiday. The government has not disclosed the agenda of the meeting.
The move also comes less than a month after the International Monetary Fund (IMF) urged the Muizzu government to accelerate fiscal reforms, recommending immediate cost-cutting measures and the discontinuation of non-essential projects. Experts warn that the MMA’s approach directly contradicts these recommendations and could push black market dollar rates to record highs.
The Muizzu administration has yet to comment on the matter.