New Delhi: The Maldives police have launched an investigation into an alleged plot to overthrow President Mohamed Muizzus government, capitalizing on the countrys deepening financial crisis. The probe was initiated after the nations primary commercial bank imposed—and later rescinded—a significant reduction in foreign exchange spending for Maldivians, sparking public outrage.President Muizzu has denounced the situation as an illegal attempt to destabilize his administration by exploiting the financial turmoil and inciting protests. “This is a deliberate effort to make me unpopular and provoke street unrest,” Muizzu stated in response to the crisis.Police confirms invetsigation in alleged coup attemptIn a statement released late Monday, the police confirmed the investigation into the alleged coup attempt. Although there have been no large-scale demonstrations in the capital, Male, there has been a sharp increase in online criticism directed at the government. According to the police, hundreds of bot accounts on social media are actively encouraging citizens to protest and fuel public unrest.The controversy began when the Bank of Maldives Limited (BML) significantly limited debit card transactions and capped credit card spending for online purchases at $100 per month. This move angered many Maldivians, who rely on these services to pay for tuition and medical treatments abroad, as well as for general online shopping. The bank claimed that the limits were introduced in response to an escalating use of foreign currency for card payments while foreign currency sales to the bank remained static. However, the Maldives Monetary Authority intervened, prompting BML to lift the restrictions on Sunday.Trapped in loan from international entitiesIn June, Fitch, an international credit rating agency, downgraded the Maldives rating and issued a warning of an impending sovereign default after foreign currency reserves fell to $492 million in May. This came just weeks after the International Monetary Fund (IMF) cautioned the country about a looming debt distress crisis. According to official data, the Maldives foreign debt reached $4.038 billion last year—equivalent to 118 percent of its gross domestic product—a rise of nearly $250 million from 2022. The country faces an additional $409 million in debt servicing obligations this year, exacerbating the financial strain.Economic crisis intensified since Muizzu came into office The economic crisis has intensified since Muizzu took office, as the Maldives ties with traditional ally India have weakened, while the country has increased its reliance on loans from China. As of June 2023, Chinas Export-Import Bank owned 25.2 percent of the Maldives external debt, making it the largest single lender, according to figures from the Maldives finance ministry.Political parties call for tax on hotels to be paid in foreign currencyPolitical parties have called on the government to introduce a tax on hotels that would be paid in foreign currency, as the nation continues to grapple with the economic crisis.Muizzu accused certain members of the BMLs board of being loyal to the previous government, suggesting they were part of the plot to undermine his presidency. “There is credible evidence that this cap on foreign exchange spending was a coordinated effort to illegally overthrow a legitimate government,” Muizzu told his supporters during a speech on Monday evening.
