BML reports improvement in foreign currency position

Bank of Maldives (BML) has reported progress in addressing its foreign currency position and improving its Net Open Position (NOP) with support from the government.

Speaking at the bank’s Annual General Meeting for 2025 held on Saturday night, Chief Executive Officer and Managing Director Mohamed Shareef said the NOP had been identified as a key financial risk and measures were taken to address it.

The Net Open Position measures the difference between a bank’s foreign currency assets and liabilities.

Shareef said one of the measures involved converting Maldivian Rufiyaa Treasury Bills into United States Dollar Treasury Bonds in coordination with the government and the Ministry of Finance.

“By the end of 2025, T-bills amounting to MVR 10.8 billion were rolled over during the year. These were not entirely new investments,” he said.

He added that this included the conversion of MVR T-bills equivalent to USD 192.8 million from previous investments into US Dollar T-bonds.

Shareef said the transaction was carried out to address the NOP shortfall through the sale of dollars to the bank.

“With this assistance and decisions taken by the bank, the NOP has shifted from a negative position,” he said.

He added that the change in NOP, along with measures taken by authorities to manage foreign exchange, has improved the bank’s capacity to provide services.

Shareef said the bank’s investment in T-bills remained within its risk limits.

“In 2025, MVR 653 million was invested in T-bills secured against fixed deposits held by the state at the bank,” he said.

He noted that BML typically invests in T-bills for periods of one year or less and rolls over these investments annually.

According to Shareef, the bank sold USD 672.5 million during the year, averaging more than USD 1.84 million per day.

This included USD 175 million sold to businesses, of which USD 104 million was allocated to small and medium enterprises. A total of USD 390 million was used for individual transactions through debit and credit cards.

In addition, USD 98.5 million was sold to Maldivians travelling abroad, while USD 9 million was provided for Umrah travel.