The Maldives Monetary Authority (MMA) introduces new banknotes into the market not merely for debt settlement, but primarily to maintain economic stability and ensure that the supply of currency meets market demand. As technology advances, updating banknotes with the latest security features to prevent counterfeiting is essential to preserving public confidence in the financial system.
While the “Ran Dhihafaheh” polymer banknote series currently used in the Maldives is highly durable, notes that become worn or damaged through extensive use must be withdrawn and decommissioned. Replacing these damaged notes with new ones does not increase the total money supply in the economy. Furthermore, during periods of high commercial activity, such as the month of Ramadan, the demand for smaller denominations increases. To facilitate smooth transactions during such times, new shipments of currency are brought in and released into circulation. Consequently, the introduction of new banknotes is a technical measure aimed at ensuring currency security and sustaining economic vitality.
