Maldives Monetary Authority (MMA)'s Annual Report states that the Broad Money - total money circulating in the economy - of Maldives observed a growth of 7 percent, reaching MVR 59.2 billion at the end of 2023.
Maldives Monetary Authority (MMA)'s Annual Report states that the Broad Money - total money circulating in the economy - of Maldives observed a growth of 7 percent, reaching MVR 59.2 billion at the end of 2023.
This marks an increase from the growth of 6 percent, MVR 55 billion, recorded at the end of 2022.
In 2019, broad money was recorded at MVR 36 billion, which rose to MVR 41 billion at the end of 2020. By the end of 2021, the number was at MVR 52 billion.
Within five years, the broad money amount has increased by MVR 23 billion.
MMA states that the acceleration in broad money growth is owing to a significant growth in Net Domestic Asset (NDA) of the banking system at a time when Net Foreign Asset (NFA) of the banking system saw a marked decline.
Last year, NDA increased by 16 percent, while NFA decreased by 27 percent.
This increase in NDA of banks is due to their credit to the private sector, which grew by MVR 2.7 billion. This is a MVR 1.7 billion increase from the previous year. Additionally, T-Bills and T-Bonds issued by banks for government requirements is another reason for the spike in broad money.
NFA, meanwhile, saw a decrease due to the lower rate of deposits of foreign currency in MMA and domestic banks.
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