The Maldives Monetary Authority (MMA) has withdrawn MVR3 billion from circulation through its Open Market Operations (OMO) programme as part of efforts to stabilise the Maldivian rufiyaa and reduce excess liquidity in the banking system.

The central bank launched reverse repurchase operations in mid-2025 to absorb surplus cash circulating within the banking sector and ease downward pressure on the local currency.

MMA statistics show that MVR3 billion has so far been removed from circulation under the programme.

The central bank’s records also show that the Government’s long-term bond obligations to the MMA have risen to MVR14 billion. The debt was accumulated through repeated money printing in recent years.

Meanwhile, the MMA’s latest annual report shows that money supply in the economy increased by 21 per cent last year, reaching nearly MVR72 billion.

Over the past two years, amendments to the Foreign Exchange Act have also been introduced to strengthen foreign currency reserves and ease pressure on the exchange rate.

President Dr Mohamed Muizzu said in April last year that the Maldives would resolve its US dollar shortage and bring the exchange rate closer to the official bank rate before the end of 2027.

The measures come amid declining dollar inflows linked to slower tourist arrivals, partly driven by instability in the Middle East. In response to the foreign currency strain, the Bank of Maldives this week tightened US dollar usage limits and strengthened related controls.