Ahmed Imad has resigned from his position as Deputy Governor of the Maldives Monetary Authority (MMA), citing recent decisions that he believes conflict with the institution’s core objectives. His departure comes shortly after the parliament’s finance committee recommended his removal.
During his tenure, Imad played a significant role in addressing economic challenges, implementing reforms in the foreign exchange market, and strengthening financial sector resilience. He was instrumental in developing the instant payment system known as FAVARA and advancing financial inclusion initiatives. His contributions also extended to regulatory reforms in the foreign currency market and efforts in sustainable finance.
One of the key achievements Imad highlighted was the completion of the National Sustainable Financing Roadmap, which outlines strategies for incorporating environmental, social, and governance (ESG) principles into the financial sector. He also oversaw the establishment of a Data Analytics Group to promote a data-driven approach within the institution. Additionally, his work involved the creation of a regulatory sandbox and a Fintech Innovation Hub to support digital transformation in the financial sector.
Imad emphasised that monetary policy measures and regulatory interventions introduced during the COVID-19 pandemic were vital in maintaining macroeconomic stability and strengthening financial sector resilience. He credited the Foreign Currency Swap facility for addressing short-term foreign currency liquidity needs for both the banking sector and the government.
However, Imad acknowledged that the withdrawal of monetary policy easing had been delayed due to weak fiscal conditions and postponed government expenditure reforms. While the economy has demonstrated strong performance in the real sector, he noted ongoing concerns in the fiscal and external sectors. Rising external debt, coupled with the close ties between sovereign debt and the banking sector, posed risks to macroeconomic stability, he warned.
Imad called for enhanced prudential regulatory measures to reduce the banking sector’s exposure to government risks. He stressed the importance of maintaining a tight monetary policy stance to safeguard the exchange rate peg and advocated for fiscal consolidation to prevent monetary financing and ensure long-term stability. He also urged the administration to prioritise fiscal discipline and uphold the MMA’s independence to protect the country’s financial stability.
