Data published by the Maldives Monetary Authority (MMA) indicates that roughly MVR 3 billion has been withdrawn from circulation to date through the Open Market Operations (OMO) implemented to stabilize the decreasing value of the Maldivian Rufiyaa.

The Rufiyaa has significantly lost value, as the US Dollar remains above MVR 20 in the black market—a situation that has lasted for almost a year.

In July of the previous year, the MMA began Open Market Operations designed to withdraw surplus liquidity from the market, which had built up due to various reasons, including monetary expansion during the COVID-19 pandemic. As per MMA data, the initiatives have to date effectively taken around MVR 3 billion out of circulation.

Information from the central bank shows that a sum of MVR 14 billion printed across different periods is still in circulation. The government has earlier recognized this surplus liquidity as a primary factor leading to the significant increase in the value of the US Dollar.

Reverse Repurchase operations are conducted specifically to decrease surplus liquidity in the banking system. Through this mechanism, the central bank issues securities, such as government bonds, to banks and financial institutions with a commitment to buy them back at a higher price after a designated time. The procedure efficiently decreases the volume of cash in circulation within the banking system.

Despite the Maldives officially setting the exchange rate at MVR 15.42 per US Dollar, a significant number of Maldivians still rely on the black market to acquire foreign currency for reasons like overseas medical care and international transactions. The black market rate has stayed over MVR 20 for about a year now.