Press barred as MMA shares monetary measures with parliamentary committee

The Parliament’s Public Accounts Committee held a closed-door meeting on Sunday, as senior officials from the Maldives Monetary Authority (MMA) discussed monetary measures implemented by the central bank to improve the country’s economy.

The agenda for the meeting, held at the request of MMA, was to share information on and discuss the measures implemented by the central bank under the monetary policy and in light of the country’s economic situation.

But at the start of the meeting, Funadhoo MP Mohamed Mamdhooh Yoonus, a lawmaker from the ruling People’s National Congress (PNC), which holds a supermajority in the committee as well as the rest of the Parliament, proposed holding it behind closed doors.

The motion passed by majority vote.

The MMA has announced measures to mop up the excess Maldivian currency in the economy, including raising the minimum reserve requirement - the minimum amount that commercial banks must hold in liquid assets, and expanding open market operations.

The central bank plans to raise the minimum reserve requirement from 10.5 percent to 11 percent starting September, and gradually raise it to 13 percent by the end of the year, subject to review by the bank’s board every three months.

The measures come as the dollar exchange rate in the black market rose to a record high of MVR 22 last week, marking a significant jump from the official bank rate of MVR 15.42.

The rising value of the dollar poses huge challenges for importers, driving up prices of goods in the Maldivian market.

Hower, the government has said that the surge is mainly driven by speculation.