The Maldives Monetary Authority’s (MMA) bond debt has climbed to MVR 16.3 billion following the completion of a transaction involving the sale of Pension Fund bonds and the reinvestment of those funds into a new government bond, according to the central bank’s balance sheet.
The MMA’s Statement of Financial Position for July indicates that government bond investments stood at MVR 13.9 billion at the end of the previous month. This figure saw an increase of MVR 2.4 billion during the past month, representing the reported value of the bond transaction.
The transfer of these funds to the government is reflected in the liabilities section of the MMA’s balance sheet. The balances of the government and state agencies, which stood at MVR 143.3 million at the end of June, surged to MVR 2 billion by the end of last month—an increase of MVR 1.8 billion.
MMA Investment in Government Bonds
- 2013 – MVR 3.1 billion
- 2018 – MVR 6.1 billion
- 2023 – MVR 14.5 billion
- 2024 – MVR 14.2 billion
- 2025 – MVR 14 billion
- 2026 (Pre-Pension Fund transaction) – MVR 13.9 billion
- 2026 (Post-Pension Fund transaction) – MVR 16.3 billion
Following this transaction, the MMA’s total Maldivian Rufiyaa assets rose from MVR 15.7 billion to MVR 18.1 billion. Including foreign currency and non-monetary assets, the central bank's total assets are valued at MVR 31 billion.
While a portion of the funds acquired through the bond transaction remained unused by the government at the end of last month, the injection of this liquidity into the economy is expected once the funds are utilized. Critics have expressed concern that this increase in the Maldivian Rufiyaa money supply could further exacerbate the ongoing depreciation of the local currency.
