Money in circulation rises 17 percent

The amount of money in circulation in the Maldivian economy increased by 17 percent, according to Maldives Monetary Authority (MMA).

In its latest quarterly report, the central bank said money in circulation stood at MVR 66.3 billion as of September last year. The increase was attributed to growth in both net domestic assets and net foreign assets.

Net domestic assets rose by 11 percent, driven largely by a 22 percent increase in banks’ investment in government treasury bills and a 6 percent rise in private sector lending. Bank deposits also increased during the period.

MMA said it launched an Open Market Operation (OMO) in August last year to manage liquidity levels, injecting MVR 2.1 billion into the economy.

According to the central bank, rufiyaa liquidity in circulation has increased by 178 percent since 2020. The authority noted that banks’ growing investments in treasury bills and bonds, along with higher rufiyaa-denominated lending, continue to expand money supply. Money in circulation stood at MVR 59.1 billion at the end of 2024.