The Maldives Monetary Authority (MMA) reported an expansion of its financial position in August 2025, with total assets rising to MVR 30.3 billion compared to MVR 29.4 billion in July.
The growth was mainly driven by an increase in both foreign and local currency financial assets. Foreign currency assets climbed to MVR 14.6 billion, up from MVR 14.2 billion the previous month, supported by higher cash balances with banks and receivables. Local currency assets also rose to MVR 14.8 billion, largely reflecting higher cash holdings with banks and additional investments in government securities.
On the liabilities side, total financial liabilities reached MVR 28.7 billion, up from MVR 27.7 billion in July. Foreign currency liabilities accounted for MVR 12.3 billion, while local currency liabilities amounted to MVR 16.4 billion. The increase in foreign liabilities was influenced by higher balances payable to the Asian Clearing Union and deposits from money changers. Meanwhile, government deposits in local currency surged, rising to MVR 1.1 billion from MVR 739 million in July.
The central bank’s reserves showed a decline, with equity falling from MVR 1.7 billion in July to MVR 1.5 billion in August. This was attributed to a reduction in reserves held by the Authority.
While the MMA’s financial position reflects an overall strengthening of assets, the rise in liabilities and the decline in equity highlight ongoing pressures. The growth in obligations to the Asian Clearing Union and increased reliance on deposits from domestic institutions point to underlying liquidity management challenges.
These figures come at a time when credit agencies have flagged concerns over the Maldives’ fiscal vulnerabilities. Moody’s, in its latest assessment, maintained a cautious outlook on the country’s creditworthiness, citing the strain from high debt and external imbalances. The MMA’s latest statement underscores the delicate balance between strengthening financial assets and managing liabilities within this broader economic context.
