Finance Minister Dr Mohamed Shafeeq has said that MMA has not initiated any counsel since the current administration came to power. However, Governor Ali Hashim has refuted these claims.
Finance Minister Dr Mohamed Shafeeq has stated that the government has not received any counsel from the Maldives central bank, Maldives Monetary Authority (MMA), on strengthening the country's financial and economic conditions.
He made this remark in response to a letter from the Parliament Secretariat seeking clarification.
Addressing Parliament Speaker Abdul Raheem Abdulla, the Finance Minister noted that since the current administration took office, MMA has not proactively provided any counsel to the Ministry of Finance.
However, he added that discussions were held with MMA at the end of last year to undertake policy-level work. During these discussions, the Ministry asked MMA to better regulate the foreign currency exchange business. MMA has also held technical-level meetings on strengthening the foreign exchange market since then.
The Minister's letter read that MMA had not worked to align fiscal and monetary policy in the most desirable manner. He said that the decision to raise the minimum reserve requirement (MRR) maintained by MMA has posed a challenge to financial transactions with commercial banks. However, solutions have now been found in meetings with MMA.
Minister Shafeeq sent the letter to parliament after the Public Accounts Committee requested the Ministry to clarify the matter. This followed the committee's decision to request the removal of MMA Governor Ali Hashim to President Dr Mohamed Muizzu. The committee decided to proceed with the removal of the Governor on the grounds that MMA has not fulfilled its responsibilities during a time when the country's economy has weakened.
In response, Governor Ali Hashim sent a report to the parliament stating that MMA had provided the necessary information, counsel, and assistance to prevent an economic crisis.
The report also indicated that MMA is still working to address the economic challenges facing the country. The Governor emphasized that the main reason for the current economic situation and the fear of an economic crisis is the lack of attention to the counsel given by MMA and international financial institutions over the past two years. He noted that the state has not maintained the fiscal discipline advocated by MMA.
Governor Hashim assured that he and MMA would provide full cooperation during this challenging task, stressing the need for the entire state to work together to overcome the economic situation.
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