MMA Boosts Dollar Sales to Banks by 25% to Ease Off-Season Shortages

The Maldives Monetary Authority (MMA) has announced a 25 percent increase in US dollar sales to commercial banks to mitigate foreign currency shortages during the tourism off-season. This temporary intervention aims to stabilize the market as tourism earnings naturally decline while the demand for foreign exchange remains high. Starting June 28, the central bank will implement increased weekly allocations for a period of three months. The move is designed to ensure that banks can better meet customer demand and secure necessary currency for essential imports and services during this critical window. Data from the first five months of 2026 reveals a significant surge in the need for foreign exchange. MMA's total sales through banks to businesses and the general public rose by 72 percent compared to the same period in 2025. This trend is driven largely by a 78 percent year-on-year increase in spending for overseas medical treatment and education. Beyond personal services, the cost of maintaining essential supplies has also risen. Foreign exchange sales for the import of fuel, cardboard, medicines, and medical equipment grew by 30 percent during the first five months of the year, highlighting the systemic pressure on the nation's dollar reserves. This latest measure is part of a broader strategic effort by the central bank to modernize the local financial landscape. Over the past two years, the MMA has introduced several reforms to strengthen the foreign exchange market, including stricter enforcement of regulations and improved foreign exchange management systems. By maintaining closer engagement with commercial banks, the MMA intends to prioritize the allocation of currency for critical needs, ensuring that the economy remains resilient even during the seasonal fluctuations of the tourism industry.