MMA Puts Brakes on Money Printing in Maldives

  • Maldives
  • Business
PUBLISHED 24 July 2023

The Maldives Monetary Authority (MMA) has set a cap of MVR 2 billion on the amount of money it can print at the government's request. This is a significant reduction from the previous cap of MVR 4.4 billion.

The MMA has already printed MVR 4.2 billion in 2023, which has been converted into long-term bonds. These bonds are due to the MMA for MVR 12.5 billion and are due in 10 years.

The decision to cap money printing is a sign that the MMA is concerned about the Maldives' rising inflation. Inflation in the Maldives has been on the rise in recent months, reaching a 10-year high of 17.2% in June 2023.

The MMA hopes that by capping money printing, it can help to slow the pace of inflation. However, it is unclear whether this will be enough to bring inflation under control.