- The MMA's net foreign currency position narrowed by MVR 94.6 million to MVR 2.54 billion in August, as liabilities grew faster than assets.
- Foreign currency assets rose 1.1 percent to MVR 12.13 billion, driven by cash and bank balances, while foreign securities investments declined.
- The Asian Clearing Union payable more than doubled to MVR 1.09 billion, and local currency holdings remained concentrated in government securities.
The Maldives Monetary Authority’s net foreign currency financial position narrowed during August, despite an increase in its foreign currency assets, as the Authority’s related liabilities grew at a faster rate.
Foreign currency financial assets reached MVR 12.13 billion at the end of August, rising by MVR 128 million, or 1.1 percent, from MVR 12.01 billion on 30 July. However, foreign currency financial liabilities increased by MVR 222.6 million, or 2.4 percent, to MVR 9.59 billion.
After subtracting these liabilities from the corresponding assets, the MMA’s net foreign currency financial position stood at approximately MVR 2.54 billion. This was MVR 94.6 million lower than the MVR 2.63 billion recorded at the end of July.
The figures show that the MMA held more foreign currency assets in August, but the amount remaining after accounting for its foreign currency obligations declined by 3.6 percent.
Most of the asset growth came from foreign currency cash and bank balances, which increased by MVR 343.6 million to MVR 7.77 billion. At the same time, investments in foreign securities declined by nearly MVR 276 million to MVR 3.11 billion. This indicates that the composition of the MMA’s foreign currency holdings shifted towards cash and bank balances during the month.
On the liabilities side, the largest movement was in the amount payable to the Asian Clearing Union. The balance more than doubled from MVR 525.3 million to MVR 1.09 billion, an increase of MVR 565.4 million.
This was partly offset by a MVR 368.5 million reduction in foreign currency deposits held by the government and government institutions, which fell to MVR 576.5 million. Foreign currency balances maintained by commercial banks at the MMA increased moderately to MVR 2.33 billion.
Changes on the local currency side were comparatively smaller. Local currency financial assets declined by MVR 22.2 million to MVR 18.17 billion. Government treasury bonds accounted for MVR 16.32 billion, or nearly 90 percent of these assets, showing that the MMA’s local currency financial holdings remain heavily concentrated in government securities.
Local currency financial liabilities fell by MVR 181.5 million to MVR 19.63 billion. Commercial banks’ rufiyaa balances at the MMA decreased by MVR 447.1 million to MVR 8.66 billion. These balances include funds maintained for minimum reserve requirements, overnight placements and payment settlements, meaning the decline is not a direct measure of changes in bank lending or customer deposits.
Meanwhile, local currency deposits held by the government increased by MVR 188.2 million to MVR 2.22 billion. Securities sold under repurchase agreements rose by MVR 125 million to MVR 2.92 billion. The MMA uses these transactions as part of its monetary operations to absorb excess liquidity from the financial system.
Currency in circulation remained broadly stable at MVR 5.09 billion, declining by MVR 14.9 million during the period.
Overall, the MMA’s total assets increased by MVR 97.5 million to MVR 31.18 billion, while its equity rose by MVR 56.5 million to MVR 1.94 billion. The figures show a modest expansion of the Authority’s balance sheet, alongside a weaker net foreign currency position because foreign obligations increased faster than foreign assets.
The statement covers the MMA’s own assets and liabilities and should not be interpreted as a standalone measure of the Maldives’ total foreign reserves or external debt.
