Muizzu in trouble? Economy minister claims there was a financial coup attempt in the Maldives

Maldives' Minister of Economic Affairs Mohamed Saeed claimed on Thursday that certain individuals were deliberately trying to disrupt the island nation's financial system. Saeed's comments come just days after President Mohamed Muizzu made the same accusation against the opposition Maldivian Democratic Party (MDP).

The ruling party's accusation came after the country's Bank of Maldives (BML) restricted foreign transactions using debit and credit cards it issues, sparking unrest among the population. However, the decision was reversed within hours following an order from the country's banking regulator.

The BML's move came days after it was reported that the Maldives' usable dollar reserves had been depleted. This is the first time in the country's history that the reserves have fallen into negative territory, reported Male-based news portal Adhadhu. The portal reported, citing sources, that the usable dollar reserves are currently in negative territory.

A few days after this report was made public, the BML blocked dollar transactions using Rufiyaa cards and reduced the limit of credit cards to $100. The bank said these changes were effective immediately and were a response to the increasing use of foreign currency cards and the stagnating sale of foreign currency to the bank.

Muizzu's party officials claimed that the opposition party was behind the BML's decision and even asked why the former finance minister's government held a press conference at the same time as the bank announced dollar restrictions.

AFP reported that police in the Maldives are investigating an alleged attempt to overthrow Muizzu by stoking anger over the financial situation. Muizzu condemned the move as an “illegal attempt” to topple his government. “An investigation into the alleged coup attempt has been launched,” police said in a statement late Monday.

Police said harsh criticism of the government had erupted online. “Hundreds of bot accounts were used on social media to call on people to take to the streets, overthrow the government and instigate public unrest,” police said.

In a press conference on Thursday, the Minister of Economy said that a lot had happened with the BML's decision and accused the opposition party of spreading lies about the country's financial situation at the time, Edition.mv reported. The minister also accused some people on social media of trying to destroy the financial system. “When you connect all these dots, we come to these conclusions,” he said. “I think those who are investigating the matter will probably make a statement about it.”

On Sunday, former Maldivian Finance Minister Ibrahim Ameer said Male was heading for bankruptcy and the root cause of the current financial crisis was the government's dependence on expected revenues. Ameer said rating agencies such as Fitch and Moody's would likely downgrade Maldives' credit rating soon.