Central Bank’s Government Bond Holdings Rise by MVR 2.4 Billion in July
- MMA's total assets rose 5.1% to MVR 31.08 billion in July, driven by a MVR 2.40 billion increase in government treasury bond holdings.
- Foreign currency financial assets fell by MVR 930.2 million to MVR 12.01 billion, while local currency assets climbed 15.5% to MVR 18.19 billion.
- Government deposits surged to MVR 2.03 billion, total liabilities rose to MVR 29.20 billion, and equity increased to MVR 1.89 billion.
The Maldives Monetary Authority’s balance sheet expanded by MVR 1.52 billion in July, driven largely by a sharp increase in its holdings of government treasury bonds, despite a decline in foreign currency financial assets.
MMA’s total assets reached MVR 31.08 billion at the end of July, representing a monthly increase of 5.1 per cent from MVR 29.56 billion in June.
Local currency financial assets rose by MVR 2.44 billion, or 15.5 per cent, to MVR 18.19 billion. The increase was concentrated in government treasury bonds, with MMA’s holdings climbing from MVR 13.93 billion to MVR 16.33 billion. This represents an increase of MVR 2.40 billion, or 17.2 per cent, within one month.
The Authority defines the balance as the outstanding principal value of the government bonds it holds. Its investment in government Treasury bills also increased by MVR 6.3 million to MVR 69.2 million.
Foreign currency financial assets moved in the opposite direction, declining by MVR 930.2 million to MVR 12.01 billion. Cash and balances held with banks fell by MVR 758.3 million to MVR 7.43 billion, while short-term loans provided to commercial banks declined by MVR 185 million to MVR 555.1 million.
On the liabilities side, local currency deposits held by the government and government institutions rose sharply from MVR 145.4 million in June to MVR 2.03 billion in July. This MVR 1.89 billion increase was partly offset by a MVR 316.7 million reduction in commercial bank balances held at MMA.
Securities sold under repurchase agreements, which MMA uses to absorb excess liquidity through open market operations, declined by MVR 59 million to MVR 2.79 billion. Currency in circulation increased marginally by MVR 24.2 million to MVR 5.10 billion.
Total liabilities increased by MVR 1.40 billion to MVR 29.20 billion, while the Authority’s equity rose by MVR 117.4 million to MVR 1.89 billion.
The gap between MMA’s foreign currency financial assets and corresponding liabilities narrowed from MVR 3.45 billion in June to MVR 2.63 billion in July. However, the statement presents the Authority’s accounting position and is not, by itself, a direct measure of the Maldives’ gross international reserves.
