The vast majority of US dollar sales from the Maldives Monetary Authority (MMA) last year were made to state-owned enterprises (SOEs), the central bank’s annual report has shown.

MMA sold USD 995.5 million in 2023, of which 69 percent or USD 687.8 million was sold to SOEs. The dollars were sold for importing fuel, staple food, medicine and medical equipment as well as for facilitating the repayment of debt owed by the companies to foreign banks.

MMA also sold dollars to banks. A total of USD 307.6 million was sold to banks last year. The dollars were sold to meet the foreign exchange demand of the public and local businesses.

During the year, USD 43.7 million was sold to Maldivians travelling abroad for medical and education purposes whilst USD 85.5 million was sold to provide USD 500 for each Maldivian travelling abroad.

Notably, the amount of US dollars provided by MMA to facilitate the USD 500 sold per traveller last year was 40 percent higher than the previous year.

The dollars sold by MMA to banks and SOEs were injected into the domestic economy for the purpose of maintaining the exchange rate at MVR 15.42 per dollar. However, most Maldivians, including businesspeople and members of the public, are usually forced to buy dollars from the black market above the official rate.