According to the annual report, the value of currency in circulation in the Maldives as of 31 December 2023 provides a detailed look at the composition and distribution of coins and banknotes within the economy. This information offers valuable insights into the monetary landscape of the country.
Coins in Circulation
As of the end of 2023, the total value of coins in circulation amounted to MVR 84.4 million. The distribution of coins by denomination is as follows:
• MVR 2 coins represent 33.9% of the total value, reflecting their significant role in everyday transactions.
• MVR 1 coins make up the largest share at 50.1%, indicating their widespread use.
• MVR 0.50 coins account for 9.8%, while MVR 0.25 coins constitute 4.5%.
• The smaller denominations include MVR 0.10 coins (0.8%), MVR 0.05 coins (0.7%), MVR 0.02 coins (0.1%), and MVR 0.01 coins (0.1%).
This distribution highlights the predominance of higher denomination coins in circulation, which are essential for daily commercial activities.
Banknotes in Circulation
The total value of banknotes in circulation at the same date stood at MVR 4 billion. The breakdown by denomination is as follows:
• MVR 500 notes dominate with a substantial 83.5% of the total value, underscoring their critical role in large transactions and savings.
• MVR 100 notes follow with 7.5%, and MVR 1000 notes account for 4.9%.
• The other denominations include MVR 50 notes (1.4%), MVR 20 notes (1.3%), and MVR 10 notes (0.9%).
• MVR 5 notes make up the smallest share at 0.6%.
This data illustrates the heavy reliance on higher denomination banknotes for significant financial transactions within the Maldivian economy.
Insights and Implications
The data from the MMA Annual Report 2023 reveals important trends in currency circulation. The predominance of higher denomination coins and banknotes suggests a streamlined currency system that favours larger denominations for efficiency in both transactions and cash management.
The robust circulation of MVR 500 and MVR 1 coins reflects their indispensability in the economy, facilitating a range of transactions from everyday purchases to larger payments. Meanwhile, the presence of smaller denominations, though minimal, ensures that the needs for minor transactions are also met.
Overall, the monetary circulation data provides valuable insights for policymakers, businesses, and financial institutions in understanding and managing the cash flow within the Maldivian economy. The MMA’s ongoing efforts to monitor and regulate the currency system are crucial in maintaining financial stability and supporting economic activities across the nation.
