The Maldives Monetary Authority (MMA) has reported that USD 362 million was deposited into domestic banks by the end of June, following the implementation of a policy mandating businesses earning in foreign currency to declare and deposit their dollar income.

The central bank noted that the figure represents a 20 per cent increase compared to the same period last year. The policy, introduced to formalise foreign exchange inflows and improve liquidity in the official banking system, has also led to a 14 per cent rise in the amount of US dollars issued by banks to individuals and businesses so far this year.

Of the total deposited, approximately 60 per cent has been transferred to the MMA, which distributes foreign currency to banks for public and commercial use. This includes funds made available through over-the-counter exchanges and card-based transactions.

As part of its currency reform strategy, the MMA aims to increase dollar allocations to small and medium enterprises (SMEs), raising the current 30 per cent allocation target to 50 per cent in the coming period. The authority believes this will help curb reliance on the informal market and strengthen the formal financial system.

Despite these improvements, the MMA acknowledges challenges in maintaining sufficient foreign currency reserves due to rising debt servicing obligations. The Government is projected to spend USD 500 million on debt repayments this year and a further USD 1 billion in 2026. The Administration’s long-term goal is to restore the value of the Maldivian Rufiyaa to its official exchange rate of MVR 15.42 per US dollar by 2027, once external debt pressures are reduced.