Maldives Monetary Authority (MMA) Deputy Governor Ahmed Imad has resigned amid accusations of non-cooperation and obstruction at work and a parliament motion for his dismissal.
In a statement after submitting his resignation letter, Imad said he stepped down from the position because of recent decisions that "do not align with the institutions core objective."
The biggest development recently had been the MMA board's decision to buy 22 hectares of land in Hulhumale' for MVR 14 billion and allocate the money to government expenditure through the Housing Development Corporation (HDC).
Imad did not attend the board meeting when this decision was approved with the vote of MMA Governor Ahmed Munawar.
Three MMA board members, including Imad, proposed to review the decision. But the proposal was not included in the agenda for board meetings and Imad was later barred from accessing the MMA systems, in order to prevent him from fulfilling his legal duties.
In his statement, Imad said "further monetary financing could have serious macroeconomic implications, leading to exchange rate and inflationary pressures and jeopardize the MMA's monetary policy objectives and independence."
Imad said that challenges persist in the fiscal and external sectors with significant external debt weighing on macroeconomic stability while the economy is experiencing a strong real sector performance.
"The financial sector is also facing risks from the high sovereign-bank nexus. To mitigate this, it is essential for the MMA to implement prudential regulatory measures to reduce the banking sector's exposure to the Government," he stated.
He added that "a tight monetary policy stance remains necessary to defend the exchange rate peg and fiscal consolidation is critical for avoiding monetary financing and achieving long-term stability."
"I urge the administration to prioritize fiscal discipline, safeguard the MMA's autonomy, and implement prudent measures to ensure macroeconomic stability," he stressed.
Imad said that during his tenure of service, he played a key role in addressing economic crises, implementing critical foreign exchange market reforms, and strengthening financial sector resilience.
"My contributions also include the development of the instant payment system (FAVARA), ongoing efforts to promote financial inclusion, implementation of the foreign currency market regulatory reforms and advancing the MMA's sustainable finance initiatives. A key milestone in this regard has been the completion of the National Sustainable Financing Roadmap, which sets a clear framework for integrating environmental, social, and governance (ESG) principles into the financial sector," he noted.
"I am deeply satisfied with the work accomplished in monetary policy implementation to maintain a stable economic environment, despite challenging conditions."
Imad had been an employee at MMA when he was appointed Deputy Governor in 2020. He holds a Masters of Science, Economics, and Finance from the UK. He holds a bachelor's degree in the field from Malaysia.
