Shahid says government’s 2.4 billion bond deal amounts to money printing and will destroy the financial system

MDP President Abdulla Shahid on Thursday said that the investment of MVR 2.4 billion in the government’s T-bill through the Pension Fund will destroy the entire country’s financial system.

In a post on social media, Shahid said the government’s decision to use pension fund money would cause serious damage to the economy. He said inflation would rise, the rufiyaa would fall further, dollars would become harder to obtain, and the dollar would further appreciate.

He said it is an injustice to the people of Maldives that the entire economy has to pay the price for the government’s inability to raise the money needed for the budget.

According to some media reports quoting financial experts, the transaction is planned to sell bonds previously bought by the Pension Office to the Maldives Monetary Authority (MMA) and then use the money to invest in a new government bond. Shahid said President Muizzu has violated his promise not to print money and that it is very sad to act in a way that could cause such huge damage to the financial system.

ޕެންޝަން ފަންޑު މެދުވެރިކޮށް އެެމްއެމްއޭ އިން ސަރުކާރުގެ ޓީ-ބިލް ގައި އިންވެސްޓްކުރުމަކީ ސަރުކާރުން ސީދާ ފައިސާ ޗާޕްކުރުން. މިކަމުގެ ސަބަބުން އިންފްލޭޝަން މަތިވެ، ދިވެހި ރުފިޔާގެ އަގު އިތުރަށް ވެއްޓި ޑޮލަރު ލިބުން ދަތިވެ ޑޮލަރުގެ އަގު އިންތިހާއަށް މަތިވެގެންދާނެ. ޕެންޝަން…

— Abdulla Shahid (@abdulla_shahid) July 23, 2026

However, the Pension Office said in an earlier statement that the transaction would benefit the fund’s portfolio. The office said this would create foreign exchange reserves in the fund and convert them into long-term treasury bonds to increase returns.

Senior employees of the Pension Office are resigning over the MVR 2.4 billion transaction. Chief Legal Officer Abdulla Fikry, Investment and Research Director Aiminath Irthiyasha, and Head of Investment and Advisory Services Haifa Ahmed resigned on Thursday.

When contacted by Sun, the Pension Office’s public relations department said it could not disclose such information as they are management level.

Earlier, the office’s Chief Executive Officer (CEO) Sujatha Haleem and Chief Financial Officer (CFO) Hawwa Fajwa also resigned.

Shahid said the Pension Office’s board members and senior employees are resigning because the money-printing work is ruining the future of the people.

Such issues have arisen within the Pension Office. Dr. Ahmed Inaz also resigned at the time. Former President Abdulla Yameen accused Inaz of resigning because the government was trying to launder money through the Pension Office. Many members of the Pension Board have resigned after Inaz’s resignation.

They include Ahmed Saruvash Adam, representing the private sector, and Ashraf Rasheed, representing the Finance Ministry.

In his resignation message, Inaz reportedly expressed serious concerns about the country’s lack of long-term sustainable fiscal strategies and the Pension Fund’s investment of MVR 2.4 billion in government bonds.