Reserve money growth remains idle by Feb end

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The annual reserve money (M0) remains relatively unchanged at 3% by the end of February 2022.

Central bank clarified that the reserve money remained unchanged after an increment in the net foreign assets of Maldives Monetary Authority (MMA) was largely offset by a decline in the net domestic assets.

Net foreign assets increased predominately owing to the significant plummet in foreign liabilities, which reflected the base effect of the repayment of the swap with Reserve Bank of India (RBI) even though a decline in foreign asset accumulation was registered.

Additionally, the net domestic assets declined owing to the surge in overnight deposit facility (ODF) placements by commercial banks resulting from the claims on commercial banks, despite an increase in net claims on central government.

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