Dollar Depreciates Against Rufiyaa As Money Printing Stops: President

The government's decision to end the printing of money during the economic crisis is having a positive impact on the value of the local currency against US Dollars, President Dr. Mohamed Muizzu has said.

The previous government temporarily suspended the implementation of some provisions of the Public Expenditure Accountability Act for a period of one year in 2020. This led to a total of 8 billion MVR being printed by former President Ibrahim Mohamed Solih's administration by extending the temporary suspension of some provisions of the Expenditure Accountability Act twice.

Financial institutions such as the International Monetary Fund repeatedly urged the government to stop printing money from 2022, but the previous government continued to print money until its defeat in the presidential election.

President Dr. Muizzu stopped the printing of money within a month of taking office. The IMF and other international financial institutions have praised the decision, saying it will improve Maldives’ economy.

The President said the rufiyaa would have fallen many times more if he had not stopped printing money. He said the rufiyaa would appreciate and the cost of living would rise dramatically.

"Our rufiyaa would have fallen and fallen to a point where it could not be rescued, and the dollar value would have risen above twenty rufiyaa," he said. He stated that if the printing of money had not been stopped, it would have had an adverse effect on the entire Maldivian economy. The entire economy could be destroyed, he said.

"Hopefully, our good results are being seen. Our currency will hold its value, and the dollar will depreciate against our currency, and the economy will improve. Now we are starting to see this effect," he said.