The Bank of Maldives (BML) has significantly increased its allocation of US dollars to the private sector this year, a shift attributed to sweeping financial reforms introduced by President Dr Mohamed Muizzu’s administration. The move reflects a broader effort to stabilise foreign currency reserves and ease pressure on import-dependent businesses.
Between January and August 2025, the bank sold approximately USD 73 million to businesses, fulfilling between 30 percent and 50 percent of total dollar requests. In comparison, only USD 69 million was disbursed throughout 2024, meeting just 5 percent to 10 percent of demand.
This turnaround follows the enactment of a new foreign currency law, which came into effect on 1 January. Under the legislation, companies earning revenue in US dollars, particularly those in the tourism sector, are required to exchange or deposit a portion of their earnings into domestic banks. The measure has strengthened national reserves and increased foreign currency inflows from tourism, a cornerstone of the Maldivian economy.
The Maldives Monetary Authority (MMA) has also pointed to a USD 400 million currency swap agreement with the Reserve Bank of India (RBI) as a key contributor to the country’s improved reserve position.
Under the provisions of the new law, 30 percent of the dollars received are allocated for public use through the banking system. In tandem with this, targeted measures have been introduced to expand foreign currency support for businesses, particularly medium-sized enterprises. These include increased access to telegraphic transfer facilities and direct dollar assistance to facilitate the import of essential goods.