To curb the demand for foreign currency and stabilize the value of the Maldivian Rufiyaa, the Maldives Monetary Authority (MMA) has withdrawn 3 billion Rufiyaa through its Open Market Operations (OMO) aimed at reducing excess liquidity in the economy. In addition to expanding these operations, the central bank has decided to increase the Minimum Reserve Requirement (MRR) for banks from 10.5% to 11% in September, with a further increase to 13% planned by the end of next year. The MMA initiated these measures to address the currency depreciation and inflationary pressures caused by the previous administration’s issuance of 8.2 billion Rufiyaa, which significantly increased the money supply in circulation.
