Speaking on the issue, Nazim said that the government was in preparation to formulate an economic reform agenda to improve the country's fiscal situation, introduce necessary laws and implement new policies.
Parliament's Public Accounts Committee has approved recommending the removal of central bank Maldives Monetary Authority (MMA) Governor Ali Hashim from his post to President Dr Mohamed Muizzu.
During the committee meeting held today, Deputy Speaker of parliament and Dhiggaru MP Ahmed Nazim proposed the removal of Ali Hashim from the post of Governor. During the vote, all members supported Nazim's proposal except Maldivian Democratic Party (MDP) member Dr Ahmed Shamheed, who represents the South Hulhumale' constituency.
Speaking on the issue, Nazim said that the government was preparing to formulate an economic reform agenda aimed at improving the country's fiscal situation. He emphasized the need to introduce necessary laws and implement new policies as part of this agenda.
Nazim, however, criticized the central bank for failing to achieve the objectives outlined in the Maldives Monetary Authority Act, especially at a time when the Maldives' economy is in distress. He said that the monetary policy, which is one of the foundations of MMA, is not functioning properly.
1. The Governor has urged banks and financial institutions to keep their reserves in MMA, indirectly aiming to limit their lending to the public
2. Therefore, with less money circulating in the economy, economic activities have come to a halt and the pace of economic growth has slowed down
3. The government is currently raising financing from the domestic market, especially at a time when there is an increasing need for proper regulation
4. The information shared by the Ministry of Homeland Security and Technology and the police highlighted not updating MMA regulations as a factor hindering efforts to prevent crime
Nazim criticized Governor Ali Hashim for his inactiveness to counsel the government on achieving the objectives outlined in the MMA Act.
He emphasized that while MMA is mandated to undertake crucial work to mitigate financial distress in the economy, Ali Hashim is not fulfilling the responsibilities of his role as Governor of MMA.
Nazim stressed that this is a crucial moment for MMA to consider amendments to the monetary policy if necessary and added that MMA now requires "brand new leadership."
“I propose to recommend the removal of MMA Governor Ali Hashim from his post to the President in accordance with Article 6(3) of the Maldives Monetary Authority Act,” Nazim said.
Ali Hashim was appointed to the position of the Governor on September 8, 2019 during the administration of former president, Ibrahim Mohamed Solih. He had also previously served as the Finance Minister of Maldives from 2008 to 2010.
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