The Maldives Monetary Authority (MMA) has increased the amount of foreign currency allocated to commercial banks to facilitate the seamless import of food supplies by businesses, coinciding with the Islamic holy month of Ramadan.
The central bank announced that for a period of three weeks starting from Wednesday, February 18, it will increase the supply of foreign exchange beyond its regular allocation. MMA stated that it would release 32% more foreign currency to banks compared to the standard amount.
According to MMA, this measure was taken to alleviate the pressure caused by the heightened demand for foreign exchange by commercial banks to facilitate the import of essential food items during Ramadan.
The central bank further noted that this increase in foreign currency allocation will provide significant convenience for importers in settling payments with international suppliers. This is expected to reduce bottlenecks in the import system and ensure a continuous supply of essential commodities in the local market.
MMA described this move as part of its ongoing efforts to strengthen the foreign exchange market and support the banking system.
However, despite the MMA’s decision to increase foreign currency allocations to banks, the exchange rate of US Dollar in the parallel market remains above MVR 20.20.
Consequently, the general public continues to face challenges in obtaining foreign currency at official rates.