The amount of USD issued to businesses has risen this year compared with the same period last year, according to figures released by the Bank of Maldives (BML).

Between January and December last year, BML sold 69 million USD to businesses, meeting between 5 and 10 per cent of overall demand. By comparison, sales from January to the end of last month reached 73 million USD, covering between 30 and 50 per cent of requests.

This increase comes in the context of new measures introduced by the Government to strengthen the nation’s USD reserves. The Foreign Currency Act, which took effect on 1 January, requires USD to be deposited or exchanged through the banking system. Officials reported that the law has already helped boost reserves, supported by continued foreign exchange earnings from the tourism industry.

Further contributing to the positive outlook, the 400 million USD currency swap signed with the Reserve Bank of India has been identified as a key factor in improving reserves during the year.

In line with the new framework, the Government decided that 30 per cent of USD obtained under the law would be channelled to the public through the banking system. The Administration also decided to increase trade transfer support, or USD assistance for the purchase of essential goods, to medium-sized businesses.