The central bank Maldives Monetary Authority (MMA) has announced that they will be engaging in open market operations in the next month to control the quantity of money in circulation due to printing of money in the past four years.
The central bank Maldives Monetary Authority (MMA) has announced that they will be engaging in open market operations in the next month to control the quantity of money in circulation due to printing of money in the past four years.
Governor Ahmed Munawwar said today that MMA's Board has approved this course of action. He said that the aim in doing so is to decrease the 'excess money' circulating in the economy.
"This will also pose challenges to the government. There will be added pressure in managing their cash flow. We are starting an open market operation to tighten the monetary policy. We will be holding five, six billion rufiya over time. Not all at once," he explained.
Within the past three years, MVR 8.2 billion was printed and released into circulation.
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