MMA increases dollar allocation to banks for imports by 10 percent

Maldives Monetary Authority (MMA) has increased the amount of US dollars allocated to banks for TT and letters of credit (LC) used for import payments by 10 percent.

The central bank said the adjustment came into effect this week and is expected to improve access to foreign exchange for small and medium-sized enterprises (SMEs).

As a result of the change, current dollar sales to SMEs have risen by 40 percent, MMA said.

Since June last year, banks’ weekly foreign exchange requirements have increased from 60 percent to 90 percent, but MMA noted that 30 percent of the deposits are now resold to banks each week to meet ongoing demand.

The central bank said the main objective of the adjustment is to distribute foreign currency more equitably through weekly sales.

Of the 30 percent resold to banks, a significant portion is allocated for essential public needs, including food imports and SME support, MMA said.