The Maldives Monetary Authority (MMA) has announced a 32 percent increase in the amount of US dollars released to commercial banks for a three-week period beginning February 17, in preparation for Ramadan.
In a statement issued on Tuesday, the central bank said the temporary adjustment was introduced to accommodate seasonal demand for foreign currency, particularly to assist businesses at the Local Market in importing essential food items ahead of the holy month.
According to the MMA, the move is intended to ease access to foreign exchange used for imports, ensuring smoother payments to overseas suppliers during a period of heightened consumption.
“This step was taken as a concession to the increased demand for foreign currency required for importing essential food items during Ramadan,” the authority said.
The additional dollar allocation is expected to help reduce bottlenecks within the import system and facilitate the continuous availability of goods in the market. Officials noted that the measure forms part of broader efforts to strengthen the foreign exchange framework and support the banking system during peak demand periods.
The central bank has previously implemented similar adjustments to manage seasonal fluctuations. In July 2025, the USD allocation to banks for import-related telegraphic transfer (TT) and letter of credit (LC) payments was increased by 10 percent. At the time, the MMA indicated that the change would lead to a 40 percent rise in dollar sales to small and medium-sized enterprises.
The announcement comes as the Maldives’ official reserves stood at USD 1.1 billion last month — the highest level recorded in the country’s history. Last year, total USD revenue reached USD 1.2 billion, while amendments to the Foreign Currency Act enabled the MMA to exchange USD 492 million.
The authority said the latest increase in dollar supply reflects its continued focus on managing seasonal demand effectively and ensuring economic stability during Ramadan.
