News Desk
The Maldives Monetary Authority has increased the supply of US dollars to domestic banks by 32 per cent for a three‑week period, a temporary measure aimed at ensuring the smooth import of essential food items during Ramadan.
In a statement, the MMA said the decision was intended to ease pressure on banks’ foreign‑exchange demand at a time when food consumption typically rises. The additional allocation, it said, would help importers settle payments to overseas suppliers and reduce bottlenecks in the import system.
Officials described the move as part of the authority’s long‑standing practice of managing seasonal spikes in foreign‑currency demand during the fasting month. “This is an important step in strengthening the foreign‑exchange market and supporting the banking system,” the MMA said.
The central bank has used similar tools before. In July last year, it raised the dollar allocation for telegraphic transfers and letters of credit to 10 per cent, a change that led to a 40 per cent increase in dollar sales to small and medium‑sized businesses, according to the bank.
President Dr Mohamed Muizzu has also sought to reassure the public that essential goods will remain available throughout Ramadan. The state‑owned STO has arranged additional supplies, while the Maldives Ports Authority has introduced expedited clearance procedures to prevent delays on the supply side.
The MMA noted that the country’s reserves had climbed to $1.1 billion last month, partly reflecting higher dollar disbursements to businesses. It was the largest monthly increase on record. The government recorded $1.2 billion in revenue last year, and the MMA booked $492 million following amendments to the Money Exchange Act.
The latest intervention will remain in effect until early March, covering the peak period for Ramadan‑related imports.
