The Maldives Monetary Authority (MMA) has decided to increase the amount of US dollars released to commercial banks by 25 percent over the next three months, as authorities move to ease pressure on the banking system during the tourism off-season.
The central bank said the temporary measure will take effect from June 28, with the additional allocations to be provided to banks on a weekly basis.
According to the MMA, the decision was taken to help commercial banks manage persistent demand for foreign currency at a time when tourism-related dollar inflows typically weaken. The off-season, which usually brings a slowdown in visitor arrivals and lower foreign exchange earnings, has this year been compounded by a recent drop in tourist arrivals linked to conflict in the Middle East.
In a statement, the central bank said the increased allocations are intended to ease dollar shortages in the banking system and ensure better access to foreign currency for essential needs, including outward remittances and critical imports.
The MMA noted that demand for dollars has continued to rise sharply this year, particularly through banks serving the public and businesses.
During the first five months of 2026, the volume of foreign currency sold by the MMA to businesses and individuals through commercial banks increased by 72 percent compared to the same period last year.
One of the biggest drivers of that surge has been overseas spending on healthcare and education. According to the central bank, foreign currency sales for medical treatment and education abroad rose by 78 percent in the first five months of the year compared with the corresponding period in 2025.
Demand has also risen for essential imports. The MMA said foreign currency disbursed for fuel, staple foods, medicines and medical equipment increased by 30 percent over the same period.
The latest intervention comes amid broader concerns over foreign currency liquidity in the Maldives, where banks have been under pressure to balance customer demand for dollars against limited inflows outside the peak tourism season. In recent months, the issue has become more visible as banks tightened card-related foreign currency usage and reviewed online transaction limits in response to rising demand.
The central bank said the latest increase in dollar allocations is designed to help banks continue meeting customer needs during a difficult period for foreign exchange inflows, while also supporting the smooth provision of banking services.
Over the past two years, the MMA has introduced a series of structural reforms aimed at stabilizing the foreign exchange market. These include implementation of the Foreign Currency Act, regulatory changes to improve dollar management, and coordination with commercial banks to prioritize the use of foreign currency for high-need sectors.
Authorities have repeatedly said such measures are intended to protect essential imports, support medical and educational needs, and improve the overall management of scarce foreign exchange resources in the economy.
With the new 25 percent increase set to begin at the end of this month, the central bank is hoping to provide short-term relief to banks and customers while the country navigates another lean tourism period.
