Maldives Monetary Authority (MMA) Governer Dr Fazeel Najeeb has called on the state to minimise expenses in a press conference held to announce his resignation on Tuesday.
Najeeb said that the biggest challenge faced by the country’s economy is the structure, which is inappropriate for a nation of this level. He elaborated on his comments, saying that the state often had to resort to printing additional money to meet the “far too hefty expenses of many state institutions”.
“A central bank must not resort to printing and releasing money, especially at a time when the economy is as weakened as it is now. Even more importantly, at a time when obtaining foreign currency is this tight,” he stated.
Najeeb advised that the best option to tackle the difficulty in obtaining foreign currency – due to the increasing amount of Maldivian currency being printed – is for the central bank to halt reprinting more Maldivian rufiya. He explained that increasing the amount of Maldivian currency being printed at a rate faster than it is possible to obtain foreign currency is one of the biggest threats to the economy.
He further called upon the parliament to expedite the passing of bills to facilitate increased state earnings and to improve the structure of the state.
He also appealed to the state to tighten fiscal policy so as to reap the best possible results from the established monetary policy framework.
Achievements during five years as governor
Announcing his resignation, Najeeb stated that he held no regrets regarding any decisions he had made while serving as governor, and that he was leaving the post in good conscience.
He confirmed that his decision to resign had not been due to any political pressure and that it had been purely a personal decision based on his familial situation.
Najeeb detailed what he described as his main achievements during the five years he served as head of the MMA, as well as other notable work he was leaving incomplete as he leaves his position.
Among the achievements mentioned, Najeeb noted the introduction of a banking law, a regulation under which banks and the financial sector can be regulated, and guidelines under which the insurance sector can be regulated.
He also added that he had been able to establish major developments on an operational level on an anti-money laundering structure with the involvement of many institutions.
He further highlighted other major prospects on which work had begun, but that had not yet reached completion. This included the establishment of an anti-money laundering act, an insurance act, and a mortgage act. He also spoke of having begun work on renewing the MMA Act and in bringing amendments to the banking law.
He revealed that he had sent drafts of many of the pending bills to the relevant authorities for amendments, tabling, and ratification.
Najeeb stated that he would not be seen in the political arena, adding that any work he conducted for the state in future will be on a purely voluntary basis.
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Achivements?
1. Majority of the transactions are not carried rufiyaa, the LEGAL tender of the country. Most tranasctions in the country are carried ILLEGALY by other currencies. The black market for doller is not bigger than ever.
.
2. Total regulatory failure. Banking sector remains a cartel that serves a few. To expreince quality of service please visit the counters of BML and feel the QUALITY of banking regulations yourself.
Not only money in your account is stolen, no one is accounable- a classic starting from Governer..
3.No improvement in not just bank interest rates. There is no credit unless you have 300% collateral.
4. No governance standards in Banks from politicised boards and senior managemt.
..etc.. etc..
correction.
doller black market IS bigger than ever.
Don't know about the achievements he claims to have reached, but what he says in the first part is spot on. I would even say it's a condition to prevent the country to fall into a more widespread poverty over time.
The governor has said a lot of good things. His hands were tied behind his back and so he couldn't run the central bank as it should have been run.
We have a bozo as a finance minister, who punches out random numbers on a spreadsheet. Majilis puts more random numbers in there and they call it a budget. Then 6 months later, they ask the governor to print more Rufiyaa because there's no more to fulfil the budget. This is the reality. I think the governor had enough of this.
Najeeb is a classic case of blind ambition inspite the lack of skill. These kind of people are destorying the Maldives now.
Without the necessary leadership skills (be it fighting an irrational finance Minister), why accept a post for glamour.
Fact of the matter is that Mr. Najeeb is not cut for the challenge. So please do NOT give excuses, subtely or otherwise. Thank God, you have resigned now. You should never have been in the job from day 1.
What has been done to stop the black market?
People have to buy dollars outside banks because nobody is interested to sell dollars at 15.42 fixed by MMA!
Why do we have a USD clearing house in Maldives when foreign currency is so scarce?
Government expenditure cannot be minimized when it is giving out so many political posts to their party members purely due to their support in elections. Previous governments gave out political positions at ministerial and deputy levels. The new government has not only been giving these, but also positions which has been filled previously by civil servants as directors, deputy directors, and assistant directors. All these people are given these positions while the civil servants who have been working diligently in government for 5,6 years go without promotions. So obviously the government spending is sky high. Where do you think all their salaries and what not are coming from