Minister of Economic Development and Trade Mohamed Saeed has firmly stated that the Government will not pursue monetary expansion, rejecting opposition allegations of a plan to inject MVR 2 billion into the economy through the pension fund.
Speaking in Parliament, Minister Saeed was responding to a question from MP Dr Ahmed Shamheed, who accused the Government of expanding the money supply to fund its spending. “This Government will not pursue monetary expansion,” the Minister said, stressing the Administration’s commitment to fiscal responsibility.
He criticised the previous administration’s financial record, highlighting that MVR 8.7 billion was received for pandemic response, but only MVR 4.2 billion was reportedly used for that purpose. Saeed questioned where the remaining funds had gone and argued that monetary expansion during the COVID-19 era had contributed to a weakened Maldivian Rufiyaa and a stronger US Dollar.
The Minister urged the opposition Maldivian Democratic Party (MDP) to avoid similar actions in the future and reminded MPs that many had opposed monetary expansion when it was previously enacted.