Maldives President Dr. Mohamed Muizzu has highlighted the positive impact of his administrations’ decision to cease printing new banknotes.
While speaking with Dhaalu atoll Meedhoo locals on Tuesday evening, March 05, 2024, during his visit, President Dr. Muizzu said that following the decision to stop overdraft, the exchange rate of US dollar has started to dip.
The Maldives head of state underscored his administration stopped printing money as it would push the country towards bankruptcy. He also added that continual of money printing would have hiked US dollar exchange rates at unstable levels.
While the Maldives Monetary Authority (MMA), has set MVR 15.42 as the exchange rate for US dollar, it is impossible to exchange at this rate. Currently, US dollar ranges between MVR 17 and MVR 17.40.
At the time he assumed office, President Dr. Muizzu said the national debt stood at USD 120 billion, out of which MVR 9 billion was owed to small private sector companies; that were contracted with various government-lead projects.
Back in April 2020, the Maldives parliament suspended Article 32(a), (d), and (e) of the Fiscal Responsibility Act, that would allow the state to increase the overdraw limit of the public bank accounts of the central bank.
The suspension was extended twice later, while the previous administration was allowed to borrow up MVR 4.4 billion.