Inflation could spike suddenly, preparation important: Former Governor Azeema

Former Governor of the Maldives Monetary Authority (MMA) Azeema Adam has said that the country must be prepared for a sudden surge in inflation, saying a financial “storm” could strike at any time.

Speaking at the MMA Research Conference 2025, Azeema said economic shocks often arrive unexpectedly, especially in small and vulnerable economies like Maldives.

“Storms sometimes come when we are asleep; at a time when our cash flow is strained and our institutions are exhausted with daily challenges,” she said.

Azeema noted that while people in small economies may not openly question the possibility of major financial shocks, they still worry about their day-to-day survival.

She said households are increasingly concerned about whether their income will be enough to buy essential food items or maintain their usual spending patterns.

“It is a real concern. People worry what will happen if something goes wrong, and whether the value of the Maldivian rufiyaa will remain stable. This is why we must be prepared,” she said.

Azeema urged policymakers to strengthen safeguards instead of applying temporary fixes.

Using a metaphor, she said: “Our ancestors put new shingles on the roof before the rainy season. Unfortunately, most of us put patches on the roof instead of replacing the shingles. That is not real preparation.”

She emphasized that strategic foresight; anticipating risks and planning long-term is one of the most important tools for preparing for economic shocks.

This year’s MMA Research Conference features 40 research papers, with more than 20 international researchers presenting.

The conference was first launched last year.