Lawmakers from the opposition Maldivian Democratic Party (MDP) have warned of economic peril and permanent damage if the central bank, Maldives Monetary Authority (MMA), goes ahead with plans to print money.
At today's parliament sitting, MPs debated the repercussions of money printing after a motion was proposed by Hulhumale' South MP Mohamed Shamheed.
MDP MPs accused the government of illegally trying to print about MVR 15 billion to purchase land for MMA for political purposes.
"Honorable Speaker, they are printing money under the pretext of buying land. We are saying that this is an irresponsible act that will destroy the stability of the economy and cause irreparable permanent damage to the economy," Kendhoo MP Mauroof Zakir said.
"Our concern is that President [Dr. Mohamed] Muizzu is turning the MMA into a political tool."
Galolhu North MP Mohmmed Ibrahim (Kudu) said the government is resorting to money printing due to the failure of their financial plan. But he said it is illegal to print money in the name of buying land.
"The MMA is a financial institution. Financial institutions earn money from financial assets and transactions. It is illegal to print money and buy property for the MMA. We have reached this situation because the government's financial plan has failed," he said.
Hanimaadhoo MP Abdul Ghafoor Moosa warned that the value of the US dollar would climb to MVR 30 per dollar if the government decides to print money. He added that confidence in the central bank would be lost.
"Honourable Speaker, the people will lose complete confidence in the central bank when they print money. While the dollar rate is above MVR 19 today, the dollar rate will be between MVR 25 and MVR 30 if they print money," he said.
However, the ruling People's National Congress (PNC) MPs said the motion contained "lies" and most MPs spoke about the things done by the former MDP-run administration.
Maafannu West MP Mohamed Musthafa said the motion was based on rumours.
Criticizing the former MDP government, Fuvahmulah South MP Ibrahim Hussain called on the opposition to act responsibly.
“I would like to call on the MDP MPs to work a little more responsibly in this parliament,” he said.
Feydhoo MP Ibrahim Didi said the government was not trying to print money and labelled the motion as "treason against the country"
The motion proposed by MP Shamheed said money printing "could endanger the financial affairs of the state and the people" and sought MPs' opinions on the matter.
