The Maldives Monetary Authority (MMA) has reported that businesses have exchanged more foreign currency earnings through the banking system than initially projected, exceeding expectations.

The central bank had earlier estimated that foreign exchange earnings from October expected to be exchanged by businesses would reach MVR 40 million by January 2025. However, as of January, MVR 50 million had been exchanged.

In addition to the increase in foreign currency inflows into the banking system, the Government's foreign exchange earnings in January saw a 12 per cent increase compared to December 2024. This led to a positive shift in the country's balance of foreign exchange transactions, with earnings exceeding expenditures in January.

The Government's official reserve assets reached USD 708.1 million at the end of January, marking a 5 per cent increase from December. Meanwhile, other foreign currency assets, including securities and foreign currency investments by the MMA in other banks, stood at USD 149.1 million, bringing total reserves to USD 857.2 million.

Usable reserves, which are funds available after deducting foreign currency financial obligations, stood at USD 116 million, a significant increase from USD 56.4 million in December, reflecting a 105 per cent growth.