Maldives Monetary Authority (MMA), the central bank of the Maldives has once again increased the US Dollar allocation for banks. MMA had increased the issue of dollars to banks twice in the past due to the shortage that arose from the pandemic.
According to a statement by MMA, in order to recover from the economic and financial downturn, the country has so far received USD 354 million. During August, the Government of India had extended a financial package worth 250 million US dollars to the Government of Maldives.
Maldives faced the biggest decline in the Tourism Industry and for the first time in its history, the country had closed down its borders for 3 months and no tourists were allowed in the county. This led to a significant dollar shortage and the exchange rate in the black market had risen to MVR 20. MMA says that the bank has been continuously working to recover from the economic and financial challenges.