The Maldives Monetary Authority has moved to ease pressure in the foreign exchange market by increasing the amount of US dollars supplied to commercial banks during the tourism off-season.
The central bank said weekly dollar allocations to banks will rise by 25 percent for the next three months, starting Tuesday. The decision comes as foreign exchange inflows typically weaken during the off-season, while demand for remittances, medical travel, education and essential payments continues.
MMA said the measure is intended to reduce the dollar shortage within the banking system and improve access to foreign currency for priority needs.
The increase follows a sharp rise in dollar sales through banks this year. According to MMA, banks sold 78 percent more dollars for medical travel and education during the first five months of 2026 compared with the same period last year. Overall dollar sales for business and public purposes increased by 72 percent over the period.
Despite higher allocations, dollar inflows have weakened, widening the gap between supply and demand. The pressure has also been reflected in the parallel market, where the US dollar has traded above MVR 20 for several days.
The shortage has affected banking services as demand for foreign currency remains elevated. Bank of Maldives last month introduced limits on e-commerce and online foreign transactions made using Maldivian rufiyaa cards, citing pressure on dollar liquidity. The bank has since said the limits will be eased before the end of the month.
MMA’s latest intervention reflects a recurring pattern in the Maldivian foreign exchange market, where the central bank supplies additional dollars during periods of lower tourism earnings to manage liquidity pressures. The authority supplied USD 72 million to banks in the first quarter of 2025 and USD 78 million in the first quarter of 2026.
The temporary increase in weekly allocations is expected to provide some relief to banks and customers, although the wider foreign exchange gap remains tied to the seasonal decline in tourism receipts and continued demand for dollar payments.
