Positive Outcomes Evident from Ceasing Money Printing, Says MMA

The Maldives Monetary Authority (MMA) has highlighted the positive impact of discontinuing the printing of money as a measure aimed at reducing the country’s operational costs. 

This was emphasised during a briefing to the Finance Committee of the House of Representatives. Deputy Governor Ahmed Imad disclosed details regarding the state’s cash flow during the briefing, highlighting positive indicators for the economy. Imad reported a 5.4 per cent growth in the economy for the current year, with revenue for the first three months surpassing initial projections.

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Imad stated, “The revenue from free aid amounts to MVR 33.5 billion, of which MVR 7.2 billion has been received as of March 14. Therefore, the revenue remains consistent with expectations.”

He further noted a significant reduction in the government’s recurrent expenditure, with both recurrent and capital expenditures showing a notable decrease compared to the previous year. Capital expenditure, for instance, dropped from MVR 3.2 billion in 2023 to MVR 1.5 billion presently, resulting in an overall contraction of MVR 2 billion.

In terms of managing cash flow, Imad highlighted a substantial decline in borrowing from the domestic market. Over the past three months, domestic bond and T-bill sales amounted to MVR 175 million.

Responding to inquiries from committee members, Imad disclosed that gross reserves totalled USD 580 million over the past three months, expressing confidence that this figure would be maintained at around USD 600 million by the year’s end.

Regarding speculation about a potential IMF package, Imad clarified that no official information had been received regarding such an agreement.

The announcement underscores the government’s commitment to fiscal responsibility and prudent financial management amidst ongoing economic challenges.