The Maldives Monetary Authority (MMA) has reported a marginal decline in its total assets in March 2025 compared to the previous month, with notable decreases in foreign currency financial assets and bank balances. The authority’s latest Statement of Financial Position, released this week, paints a picture of shifting liquidity and contracting reserves.
Total assets dropped to MVR 30.1 billion at the end of March, from MVR 30.7 billion in February. This was primarily driven by a MVR 611 million reduction in foreign currency financial assets, which fell to MVR 14.8 billion. The decline was largely due to reduced cash and balances with banks, which dipped from MVR 11.35 billion to MVR 10.67 billion over the month.
Meanwhile, local currency financial assets remained relatively stable at MVR 14.4 billion, with minor movements in short-term and long-term staff loans. Investments in government treasury bonds—by far the largest single component—stood at MVR 14.2 billion, showing a slight decrease from the previous month.
On the liabilities side, commercial banks’ foreign currency balances with the MMA dropped by over MVR 200 million, suggesting reduced foreign reserve holdings by the banking sector. A significant decline was also recorded in payables to the Asian Clearing Union, which halved from MVR 821 million to MVR 445 million.
At the same time, local currency balances held by commercial banks fell by more than MVR 800 million, down to MVR 10.37 billion, while currency in circulation rose to MVR 4.42 billion, possibly reflecting increased cash usage or seasonal withdrawals.
Total liabilities stood at MVR 28.5 billion, down from MVR 29.2 billion a month earlier. Equity, meanwhile, increased by MVR 57 million, reaching MVR 1.56 billion, suggesting a gain in reserves likely attributed to positive valuation changes or retained earnings.
Overall, the balance sheet highlights a slight contraction in the central bank’s financial position, primarily linked to foreign reserves and commercial bank liquidity. The shift comes amid broader efforts by the MMA to manage foreign currency flows and stabilise domestic liquidity.
