The Central Bank Maldives Monetary Authority MMA says it printed MVR 3.9 billion upon the insistence of the government last year.
MMA statistics showed that most of the money was printed in November of last year. It showed that MMA printed MVR 2.1 billion in November alone. Printing money also means overdrawing too.
Up until 2013, the government had been printing money from the Public Bank Account (PBA) but stopped in 2014. BPA was being used to pay back state debts.
The Administration began using the PBA to print money back in 2020 due to the economic constraints brought on by the COVID-19 Pandemic. The Parliament allowed the government to overdraw up to MVR 4.4 billion back in April 2020.
The Parliament has also approved this limit for this year too.
Economists say printing more money doesn't increase economic output and that it only increases the amount of cash circulating in the economy. If more money is printed, consumers are able to demand more goods, but if firms have still the same amount of goods, they will respond by putting up prices
