MMA mops up MVR 3 billion to reduce surplus liquidity

Aug 27, 2026, 8:32 AM
Maldives Monetary Authority (MMA)

Maldives Monetary Authority (MMA)

The Maldives Monetary Authority (MMA) has announced that it has mopped up an additional MVR 3 billion through its Open Market Operations to reduce surplus liquidity circulating within the banking system.

Following this intervention by the central bank, short-term liquidity in the economy has decreased to MVR 3.5 billion. When the MMA initiated these operations last year, this figure stood at MVR 6.5 billion.

These measures are part of a broader strategy by the MMA to address the acute dollar shortage facing the country. Last month, the central bank decided to increase these operations by 10 basis points.

The objective of increasing these basis points is to enhance the interest income banks earn from these transactions, thereby incentivizing them to maintain their funds with the MMA.

In addition to Open Market Operations, the MMA has launched a joint crackdown with government enforcement agencies to curb the dollar black market. 

The Foreign Exchange Act has also been amended to mandate that resorts exchange 40 percent of their dollar revenue every month. 

These measures have sparked concern, with the Maldives Association of Tourism Industry (MATI), which represents resort owners, stating that converting such a high volume of dollars is unfeasible.

The government maintains that the root of the issue lies with businesses earning dollar revenues. It alleges that black market rates are dictated by an extensive network of those with access to foreign currency. The government further contends that individuals receiving salaries in dollars also contribute to the volatility within this network.

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