The government has decided to print a record amount of money through the central bank in violation of President Dr. Mohamed Muizzu's key policy.
Multiple sources confirmed to Adhadhu that the Maldives Monetary Authority (MMA) board approved the printing of more than MVR 14 billion.
When contacted by Adhadhu, MMA officials said they needed more time to comment officially.
Governor Ahmed Munawar was not responding to calls or messages.
The MMA will be using MVR 14 billion to purchase 20 hectares of land from the Urban Isle of Hulhumale' Phase 2.
The central bank has now sent an official letter to the Housing Development Corporation (HDC) to purchase the land.
HDC did not confirm whether they had reached a decision regarding the letter.
The purpose of the investment appears to be to find a way to counter the deteriorating financial situation.
When the MMA makes such a large investment and the money is deposited by HDC into a local bank, the number of loans issued by the bank will increase significantly.
Experts said the government's plan is to sell bonds to the bank to borrow more money for expenses.
Meanwhile, the Economic Council had a special meeting at the President's Office on Saturday. The government did not disclose the reason for the meeting during the weekend.
The move comes less than a month after the International Monetary Fund (IMF) called on the government to accelerate fiscal reforms.
The IMF recommendation called for cost-cutting measures to be implemented as soon as possible and wasteful projects to be stopped.
President Muizzu has repeatedly emphasized his policy to bolster the economy without resorting to money printing.
He asserted that printing money is not a solution for the country's economic recovery and claimed his administration was dedicated to improving the economy without devaluing the local currency.
