Former Finance Minister Ahmed Munawar has raised his concerns after the Maldives monetary Authority revealed that MVR 800,000,000.00 was printed last April. The former Minister who spent a considerable amount of time working at the Central Bank MMA . According to the data released by MMA, MVR 800,000,000.00 was borrowed from the central bank to the government to increase cash flow within the crippled economy, a move advised against by both the World Bank and the International Monetary Fund.
He went on to speculate that the funds borrowed last April was to cover government recurrent expenses such as salaries for state employees and that total tourist arrival in March 2020 had dipped by 21% compared to the year before. It is to be noted that soon after this tourist arrival halted altogether due to the closure of all airports due to the community outbreak of COVID-19 in the Maldives.
He went on to state that the cash in circulation had increased to MVR 4.2Billion which is a 12% increase compared to that of last year. The implications of which he stated was that the state foreign currency reserve and the long term savings being dried up by 3% and 2% respectively on a year on year basis respectively. He continued on to state that this is the first time within last 4 years that such a dip has been observed and raised doubts on the uncertain future of the Maldivian economy. Ahmed Munawar who served as the Finance Minister during President Nasheed’s administration, went to state that if government expenditure and structure is not revised the country would face a crisis.