MMA Boosts US Dollar Supply by 25% to Ease Off-Season Shortages

The Maldives Monetary Authority (MMA) has increased the volume of US dollars sold to commercial banks by 25 per cent, effective immediately, to combat foreign currency shortages during the tourism off-season. This temporary measure will remain in place for the next three months. The central bank stated that the additional allocation is designed to stabilize liquidity within the banking system as foreign exchange inflows from the tourism sector typically decline during this period. By increasing the dollar supply, the MMA aims to ensure that commercial banks can better meet customer demand and facilitate smoother access to foreign currency for essential transactions, reducing the pressure on the domestic financial system. The move comes amid a significant surge in foreign currency demand across the Maldives this year. Data from the MMA reveals that during the first five months of 2026, the volume of foreign currency sold through commercial banks to individuals and businesses jumped by 72 per cent compared to the same period last year. The sharpest increase in demand is attributed to residents seeking overseas medical treatment and education. Allocations for these two sectors rose by 78 per cent during the first five months of 2026 compared to the corresponding period in 2025. Beyond personal needs, the demand for imports essential to national security and public health has also climbed. The MMA reported a 30 per cent increase in foreign currency allocated for the import of staple food items, fuel, medicines, and critical medical equipment over the same timeframe. These figures highlight a growing reliance on central bank interventions to maintain the flow of essential goods and services as the country navigates the seasonal fluctuations of its tourism-driven economy.