MMA to increase weekly dollar sales to banks by 25% for 3 months

The Maldives Monetary Authority (MMA) has announced that it will increase the amount of US dollars sold to commercial banks by 25 per cent for a three-month period beginning next week.

In a statement issued on Thursday, the central bank said the increase will take effect from next Sunday and is intended to support the banking system during the tourism off-season, when foreign currency inflows typically decline.

According to the MMA, the additional supply is aimed at helping commercial banks meet continued demand for foreign currency, particularly for outward remittances.

The central bank described the measure as a temporary intervention to ease foreign currency liquidity constraints within the banking system.

"This is a temporary intervention by the central bank intended to mitigate foreign currency liquidity constraints within the banking system and ensure easier access to dollars for essential requirements," the MMA said.

Demand for US dollars has exceeded the amount of foreign currency collected by several commercial banks in recent months.

As a result, a number of banks have introduced measures to manage foreign currency availability, including limits on online shopping and e-commerce transactions made with Maldivian rufiyaa debit and credit cards.

The MMA said the temporary increase in weekly dollar sales is intended to help improve access to foreign currency during the off-season.