The Maldives Monetary Authority (MMA), in collaboration with the Maldives Customs Service, is developing a new verification system designed to streamline the allocation of US dollars to importers of essential goods, the central bank has announced.
This initiative, executed under the MMA’s foreign exchange intervention policy, aims to ensure that foreign currency sold to commercial banks is directly and efficiently routed to businesses importing vital commodities. The verification system will allow authorities to cross-reference foreign exchange transactions conducted via Telegraphic Transfer (TT) with physical customs data, confirming that the corresponding goods are indeed being imported into the country. To ensure the accuracy of this process, the MMA is also working alongside the Ministry of Economic Development, Transport and Trade to formally identify eligible essential goods importers.
The development of the system comes during a period of heightened demand for foreign currency. The Bank of Maldives (BML) released over USD 186 million to customers for TT payments between January and the end of July this year. This represents a monthly average of USD 27 million—a sharp increase of USD 12 million compared to the monthly average recorded last year. In total, the national bank provided around USD 570 million to meet various customer foreign exchange needs over the first seven months of the year, averaging USD 2.7 million per day.
To alleviate the ongoing pressure on the foreign exchange market and make USD more accessible through the formal banking system, the MMA recently intervened. On 11 August, the central bank decided to temporarily increase the volume of US dollars sold to commercial banks for a three-week period.