A shortage of MVR 20 banknotes has emerged in Maldives, with businesses and banks reporting limited circulation of the denomination recently.
Several sources said financial institutions are facing difficulties obtaining MVR 20 notes amid increased ATM withdrawals and cash transactions ahead of Ramadan. Businesses have also flagged the issue, noting that the scarcity of small notes is disrupting day to day cash transactions.
A person speaking on the matter said ATMs are receiving large volumes of worn MVR 20 notes. Because many of the notes are old and damaged, machines are sometimes unable to accept them, compounding the shortage.
Businesses said the shortfall began last week, attributing it to higher demand for smaller denominations as cash usage rises during the pre-Ramadan period.
Maldives Monetary Authority (MMA), which is responsible for issuing currency, releases banknotes based on the needs of banks and the public. Under the Maldives Monetary Authority Act, the central bank issues money to support economic activity and to replace deteriorated notes.
According to the MMA’s 2024 annual report, the total value of currency in circulation stands at MVR 4.14 billion. Demand for specific denominations depends on public spending patterns and how financial institutions distribute cash. Smaller notes such as MVR 20, MVR 10 and MVR 5 tend to wear out more quickly as they change hands more frequently than higher value denominations.
Official statistics show that after the MVR 100 note, the MVR 50, MVR 20 and MVR 10 notes are among the most frequently reprinted in the Maldives.
Earlier this month, MMA printed a new stock of MVR 100 notes. The authority has routinely imported newly printed currency, including an additional batch of MVR 100 notes brought last year.
