The Maldives Monetary Authority has reviewed the monetary policy measures taken over the past 12 months to support price and exchange rate stability and strengthen official reserves. The measures combined larger foreign exchange sales with tighter rufiyaa liquidity management. Foreign exchange sold through banks to designated food importers increased 32% over the latest three-month period, weekly intervention volumes rose 26% from June 25, and weekly sales to banks under the general allocation mechanism increased 51% from Aug. 12. The authority resumed open market operations in July 2025 and began regular 14-day liquidity operations in December. It also increased the minimum reserve requirement for rufiyaa deposits from 10% to 10.5% in January 2026. The measures come as official reserves fell 17% year over year to USD 686.8 million at the end of June, while the 2026 current account deficit is forecast at USD 627.7 million, or 7.8% of gross domestic product. Higher fuel, freight and import costs linked to the conflict in the Middle East are adding to inflation and external financing pressures. The minimum reserve requirement is scheduled to rise to 11% on Sept. 3 and to 13% by the end of 2027, subject to liquidity and economic conditions. The authority also plans to expand foreign exchange supplied through banks during September and has submitted proposed amendments to the Foreign Currency Act to strengthen implementation, reporting and oversight.

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