MMA reports positive impact of decision to halt money printing on Maldives' economy

29 Mar 2024 | 23:46
MMA meeting Finance Committee of the Parliament (Photo/Parliament of Maldives)

The Maldives Monetary Authority (MMA) announced on Wednesday that the government's cessation of money printing has resulted in significant cost reductions, contributing to improved fiscal and economic conditions in the Maldives.

In a briefing to the Finance Committee of Parliament on cash flow, Deputy Governor Ahmed Imad highlighted the positive outcomes of the decision, noting that the economy had grown by 5.4 percent this year and first-quarter revenue had exceeded expectations.

Revenue from free aid stands at MVR 33.5 billion, with MVR 7.2 billion received as of March 14, aligning well with expectations

Imad stated

He further emphasized a considerable reduction in the government's recurrent expenditure, with statistics indicating lower recurring and capital expenditures for March compared to the previous year.

Capital expenditure, which stood at MVR 3.2 billion in 2023, has decreased to MVR 1.5 billion.

Imad highlighted a contraction of MVR 2 billion when comparing recurrent and capital expenditure to the previous year, indicating a more efficient use of financial resources.

To manage cash flows effectively, Imad noted a significant decrease in borrowing rates from the domestic market.

In response to parliamentary inquiries, Imad reported gross reserves of approximately USD 580 million over the past three months, in accordance with MMA regulations.

He expressed confidence that this figure would be maintained at around USD 600 million by year-end.

Regarding speculation about an agreement with the International Monetary Fund (IMF), Imad clarified that no official information had been received regarding such a decision.

The MMA's report underscores the positive impact of the government's policy decisions on the Maldives' economic stability and fiscal management.