The government has overdrawn MVR 1.7 billion through the Maldives Monetary Authority (MMA) in October 2023.
MMA statistics show that the overdrawn amount in October is a MVR 300 million increase from the previous month.
Since 2020, the government has engaged in the practice of printing money every month.
A total of MVR 4.2 billion, printed earlier this year, has been transformed into long-term bonds. Meanwhile, the monthly printing quota has been restricted to MVR 2 billion in an effort to curtail the government printing additional currency each month.
The monetary expansion in 2023 is poised to reach MVR 6.2 billion, inclusive of the MVR 4.2 billion long-term bonds, with an additional MVR 2 billion expected to be printed before the year's end.
Statistics from the Ministry of Finance revealed that the total long-term bonds of MMA has reached MVR 13 billion, underpinning the state's monetary strategy.
Since 2020, the government enforced a printing limit of MVR 4.4 billion though Public Bank Accounts (PBA), with the restriction approved by the parliament for withdrawals until the end of the 2023 fiscal year.
The government practiced unrestricted overdrawing from PBAs since 2013, which came to an end in 2014 when funds were no longer withdrawn for government operations while PBAs were specifically utilized to meet the government's debt obligations.
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