Minister of Economic Development and Trade Mohamed Saeed has assured that the Government will not pursue monetary expansion, dismissing claims by the opposition that it plans to do so.

The minister made the statement in Parliament while responding to a question from South Hulhumalé MP Dr Ahmed Shamheed, who accused the Government of attempting to inject MVR 2 billion into the economy through the pension fund.

“Honourable Member, this Government will not pursue monetary expansion,” Minister Saeed said, reaffirming the Administration’s commitment to responsible fiscal management.

Addressing the opposition’s criticism, the minister highlighted the financial record of the previous administration, noting that the Government’s debt had risen significantly during the COVID-19 pandemic. He said that although MVR 8.7 billion was received under the pretext of pandemic-related funding, only MVR 4.2 billion was actually spent on pandemic response efforts, questioning where the remaining funds had gone.

Minister Saeed added that the decision to expand the money supply after suspending key provisions of the Fiscal Responsibility Act had weakened the Maldivian Rufiyaa and led to an appreciation of the US dollar against it.

He further urged the opposition Maldivian Democratic Party (MDP) not to repeat such actions if they return to power, reminding them that many opposition MPs had previously urged the Government at the time not to engage in monetary expansion.