MMA implements MVR 2 bln limit on money printing

The central bank, Maldives Monetary Authority (MMA) has set a cap of MVR 2 billion on the amount of money it can print at the government's request.

The MMA issued MVR 1.6 billion in May this year and MVR 479 million in June last year at the request of the government.

According to the MMA and the Finance Ministry, MVR 4.2 billion of the money printed so far this year has been converted into long-term bonds. The bonds are due to the MMA for MVR 12.5 billion and are due in 10 years.

Earlier in 2020, at the peak of the COVID-19 pandemic, the Finance Ministry asked the Parliament to facilitate an overdraft of funds, as over MVR 4 billion were immediately required to run the government. The Parliament responded by temporarily suspending certain provisions of the Public Expenditure Accountability Act in April 2020. Subsequently, upon government request, the suspension of these provisions was extended, with its current expiration date set for the end of this year.