Fayyaz Ismail, Chairperson of the main opposition Maldivian Democratic Party (MDP), has strongly criticised the Mohamed Muizzu administration’s plan to print MVR 15 billion, warning that such a move could exacerbate inflation and harm the nation’s economy.
In a post on X on Sunday, Ismail described the proposed currency issuance as “deeply irresponsible” and “the largest quantity ever printed in the country.” He argued that this approach would artificially inflate government revenue to support unproductive fiscal expenditures, leading to higher inflation that would disproportionately affect average citizens. “Within the already fragile economic context of our nation, en masse printing of currency with no plan to ease real burdens on people will only lead to higher inflation, with the average citizen bearing the brunt of the impact,” Ismail said.
The former trade minister also raised concerns about the legality of the Maldives Monetary Authority’s (MMA) involvement in the government’s plan, saying that the central bank lacks the legal authority to print money for investment purposes. “The MMA governor and Board must be held accountable. MMA Governor can’t hide behind the government later on. MMA is supposed to be independent,” he added.
President Muizzu had previously expressed opposition to debt monetisation as a solution to the country’s economic challenges. On various occasions, Muizzu had criticised the previous administration’s reliance on money printing, suggesting it could lead the nation toward bankruptcy and devalue the Maldivian rufiyaa. He had earlier said that his administration had halted debt monetisation altogether and focused on strengthening state-owned enterprises, enhancing corporate governance, and expanding revenue streams as essential for economic stability.