MMA's independence compromised: Ameer

Former Finance Minister Ibrahim Ameer has strongly criticized the Maldives Monetary Authority (MMA), asserting that the institution has lost its independence and is no longer able to effectively carry out its responsibilities.

Speaking in a press conference held by opposition Maldivian Democratic Party (MDP), Ameer stated that MMA is primarily responsible for driving economic growth, stabilising commodity prices, and regulating prices through exchange rate policy. However, it does not appear as if MMA is fulfilling these duties effectively, he said.

Ameer expressed concern that the Maldives Monetary Authority is now more heavily influenced by the government than at any point since it became a central bank independent of the Finance Ministry under the new Constitution.

Ameer further alleged that the government is planning to use funds from the Maldives' usable reserve for the Rasmale' reclamation project. Although speculation about this arose yesterday, the government is yet to comment on the matter.

Ameer cautioned against the move, stating it is unwise to use funds from the usable reserve for government projects at a time when the reserves are in such a dire situation.

"Even now we are seeing STO being unable to bring in medicines. While issues like this exist, it is dangerous to use Maldives' reserve in this manner," Ameer said.

Ameer went on to allege that the government plans to take a loan of USD 500 million (MVR 7.7 billion) through SOEs for the Rasmale' project. He said that the remainder of the necessary funds are to be sought through the Rasmale' company.

"The money from the reserve is certainly going to the Rasmale' company. MMA Governor and staff as well will know that if these funds are given to that company, they will not be able to repay it," Ameer said.

Ameer said that MMA's current policies are also made to align with government stances, through their influence. He reasserted that the current MMA governor's independence is compromised.