Bank of Maldives (BML) released a public statement this week to address market confusion surrounding two key financial metrics: its US Dollar Net Open Position (NOP) and its US Dollar liquidity. The bank stressed that BML’s NOP and liquidity are separate indicators that serve different purposes — and that both currently sit at health levels.
Key Insights
- Over USD 600M+ foreign exchange transactions facilitated in the past year
- USD 585M net tourism loan portfolio as of Q1 2026
- BML achieves record results last year
Net Open Position (NOP)
The gap between a bank’s foreign currency assets and liabilities at a given moment. It measures exposure to exchange rate movements — not the ability to disburse dollars.
Liquidity
The bank’s capacity to meet short-term obligations: customer withdrawals, outward remittances, and loan disbursements. A distinct operational metric.
BML was direct: a short NOP does not signal a liquidity problem. The bank kept this distinction central to its statement, noting that the two metrics assess different dimension of financial health.
From Short to Long: How BML Correct its NOP
BML’s NOP and liquidity management came under scrutiny after a period of sustained dollar outflows. From December 2020, the bank’s NOP held at a low level. By September 2024, the US Dollar NOP reached negative 20%, a short position, meaning the bank had sold roughly USD 200 million more than it held. The primary risk at that point was potential foreign exchange losses if the Maldivian Rufiyaa depreciated. BML was clear that this did not affect its liquidity.
The bank acted. Working closely with the Ministry of Finance and Planning, BML executed a deliberate corrective strategy. By September 2025, it reversed the position entirely — moving the NOP to long — and has since kept it well above mandatory regulatory thresholds. The turnaround reflects active balance sheet management rather than market luck.
Liquidity: The Operational Picture
On the liquidity side, BML’s NOP and liquidity management tell a story of scale. In the past year, the bank processed over USD 600 million in foreign exchange transactions across individuals, businesses, and corporates — covering telegraphic transfers, card requirements, and related services. That volume reflects an active, functioning treasury operation rather than a constrained one.
Tourism lending also expanded sharply. Since 2024, BML disbursed USD 365 million in new loans to the sector. By the close of Q1 2026, the net tourism loan portfolio reached USD 585 million — a signal of confidence in both the sector and the bank’s own capacity to deploy capital.