Bank of Maldives (BML) has issued a strong assurance over its foreign exchange stability and liquidity position, clarifying that the bank remains financially sound despite previously recorded exposure risks linked to its Net Open Position (NOP).
In an official statement released today, the bank emphasized that its US dollar liquidity is stable and continues to be actively managed, dismissing concerns that recent figures reflect any weakness in its ability to meet customer obligations.
BML explained that the NOP, which measures the gap between foreign currency assets and liabilities, is often misunderstood as an indicator of liquidity. The bank stressed that liquidity instead refers to its ability to meet short-term obligations such as withdrawals and payments, which it confirmed remains strong.
The bank revealed that its NOP had declined since December 2020, reaching a short position of 20 percent in September 2024, equivalent to an oversold exposure of approximately USD 200 million. While this exposed the bank to potential exchange losses if the Maldivian Rufiyaa depreciated, BML clarified that this did not impact its operational liquidity or service delivery.
According to the statement, the short position has since been corrected through coordinated measures, with support from the Ministry of Finance and Planning. The bank confirmed that its NOP has now been restored to positive levels, aligning with regulatory requirements.
BML further highlighted that it maintained total US dollar assets exceeding USD 600 million during this period, ensuring uninterrupted services including telegraphic transfers, card transactions, and business payments.
The bank also underscored its continued support to the tourism sector, revealing that new loans issued to the industry from 2024 to date amount to USD 365 million, with the total tourism loan portfolio reaching USD 585 million by the end of the first quarter of 2026.
Reinforcing confidence, CEO and Managing Director Mohamed Shareef noted during the bank’s Annual General Meeting that BML continues to deliver strong financial performance, backed by robust capital and liquidity ratios that exceed regulatory and international standards.
The bank concluded by reaffirming its commitment to transparency, prudent financial management, and maintaining the confidence of customers and stakeholders, positioning itself as a stable pillar of the Maldivian financial system.
What is Net Open Position (NOP)
Net Open Position refers to the difference between a bank’s foreign currency assets and its foreign currency liabilities at a given time. It indicates the bank’s exposure to exchange rate fluctuations. A short position means liabilities exceed assets, increasing risk if the local currency weakens, while a positive position reflects stronger coverage of foreign currency obligations.
