The Maldives Monetary Authority (MMA) has announced plans to further tighten its monetary policy and introduce new measures to reduce the excess liquidity of Rufiyaa in circulation. In a statement, the MMA stated that its board has approved two key actions aimed at managing the surplus money supply: raising the minimum reserve requirement (MRR) that banks are required to hold with the MMA, and expanding open market operations (OMOs) to absorb more liquidity from the banking sector.

Starting in September, the MRR will be increased from 10.5 percent to 11.0 percent. The MMA board will then review the market quarterly and gradually raise the MRR to 13 percent by December 2027.

Additionally, the MMA has decided to increase OMOs by 10 basis points.

Data from the MMA shows that since OMOs resumed in July 2025, an average of MVR 2.7 billion has been withdrawn from excess liquidity in the banking system up to July 2026. Consequently, short-term liquidity has decreased from MVR 6.5 billion to MVR 3.7 billion.

This decision comes at a time when the value of the US dollar has significantly risen in the Maldivian market. Over the past two and a half years, the dollar has appreciated from MVR 17 to MVR 21.60.

The government attributes this increase to the previous administration’s decision during the COVID-19 pandemic to print more than MVR 8 billion, which they say contributed to pressure on the dollar market. The rising dollar has also led to higher prices for commodities in the Maldives.