The amount of money in circulation in the economy, measured as broad money, increased by 17 per cent, according to statistics published in the Maldives Monetary Authority’s (MMA) Quarterly Economic Bulletin.
According to the MMA’s latest quarterly report, broad money stood at MVR 66.3 billion at the end of September 2025, marking an acceleration compared to growth recorded earlier in the year. The increase was driven by growth in both net domestic assets (NDA) and net foreign assets (NFA) of the banking system.
The MMA reported that net domestic assets increased by 11 percent, largely reflecting a 22 percent rise in investments in government treasury bills and a 6 percent increase in private sector lending. Growth in NDA was mainly concentrated within commercial banks, while the NDA of the MMA recorded an annual decline. Deposits held at banks also rose during the period, contributing to the expansion in money supply.
On the composition of money supply, other deposits, including savings and time deposits, accounted for 30 percent of total broad money and grew by 31 percent year-on-year. This growth was driven mainly by increases in time deposits denominated in both local and foreign currencies. Demand deposits, which made up 64 percent of money supply, expanded by 12 percent, a notable acceleration from the growth recorded in June 2025.
To manage liquidity conditions, the MMA resumed Open Market Operations (OMO) in July 2025 through structural liquidity operations. As part of recent monetary policy adjustments, the central bank reduced key policy rates, including lowering the Standing Deposit Facility rate to 0.50 percent and the Standing Lending Facility rate to seven percent. The foreign currency minimum reserve requirement was also reduced to five percent to enhance foreign currency liquidity, while the local currency requirement remained unchanged at 10 percent.
The report noted that real GDP is estimated to have grown year-on-year in the third quarter of 2025, following growth of 6.7 percent in the previous quarter. Economic expansion was driven mainly by the tourism sector, with construction, real estate, and fisheries also showing positive momentum. In contrast, wholesale and retail trade weighed on growth. Inflation eased to 4.0 percent during the quarter, reflecting slower growth in restaurant and café service costs.
In the external sector, the merchandise trade deficit narrowed to USD 815.9 million in Q3 2025, supported by higher exports—particularly frozen skipjack tuna—and a marginal decline in imports.
