Governor of Maldives Monetary Authority (MMA) Ali Hashim has stated the authority has no plans to print new banknotes despite the economic repercussions of the COVID-19 pandemic.
Speaking in response to a question by Parliamentarian Ahmed Shiyam regarding the emergency motion on COVID-19, the governor said the economic recovery plan does not include printing new banknotes. The governor noted countries rarely print new banknotes even during the toughest economic situations, adding careful economic consideration and planning precedes any such action even in countries with abundant resources. He noted Maldives does not have the luxury of resources to recover from the economic impacts of printing new banknotes.
Noting the current situation needs careful short-term and long-term planning, Governor Hashim stated MMA has devised a plan for the worst-case scenario for the Maldivian economy amid the COVID-19 pandemic. He said Maldives can recover the economy after such a scenario if the plan is followed.
The governor also revealed the government has assured to provide MMA with the foreign grants which are expected to be received this year. As such, he noted the government has assured to provide USD 50 million from foreign grants within the next 3 months.
Following the suspension of the tourism operations amid the COVID-19 pandemic, Maldives has fallen to an economic crisis as the country is highly dependent on the revenue generated from tourism. The government has introduced economic relief packages to mitigate the impact of COVID-19 on individuals and local businesses.