Bank of Maldives Affirms Strong Net Open Position and Sound US Dollar Liquidity

The Bank of Maldives has issued an official statement affirming that its Net Open Position in United States dollars has returned to positive levels, while maintaining that its US dollar liquidity remains stable and sufficient to meet customer and market needs.

In its clarification, the Bank outlined the distinction between Net Open Position and liquidity, noting that the two indicators serve different purposes in assessing financial health. Net Open Position reflects the difference between foreign currency assets and liabilities and measures exposure to exchange rate movements, while liquidity refers to the Bank’s ability to meet short term obligations such as withdrawals and payment commitments.

The Bank confirmed that its Net Open Position had deteriorated from December 2020, reaching a short position of 20 percent in September 2024. This represented an oversold position of approximately USD 200 million at that time. The Bank stated that the risk associated with this exposure was limited to potential foreign exchange losses in the event of a currency devaluation, and did not affect its liquidity or its ability to meet customer transactions.

According to the Bank, the short position was addressed through coordinated corrective measures implemented with the support of the Ministry of Finance and Planning. These efforts enabled the Bank to restore its Net Open Position to positive levels during the course of last year and again more recently, ensuring compliance with regulatory requirements.

Despite the earlier position, the Bank continued to facilitate foreign exchange transactions, with total US dollar sales exceeding USD 600 million. These were used to support individuals, businesses and corporates, including payments through telegraphic transfers and cards.

The Bank stated that US dollar liquidity continues to be actively managed through diversified funding sources, treasury operations and close coordination with key stakeholders. It further noted that lending activity remained strong, particularly in the tourism sector, where USD 365 million in new loans were extended from 2024 to the current period. As of the end of the first quarter of 2026, the Bank’s net tourism sector loan portfolio stood at USD 585 million.

Bank of Maldives CEO and Managing Director Mohamed Shareef, speaking at the Annual General Meeting held on 28 March 2026 and in a subsequent public address, stated that the Bank’s financial performance remains strong. He noted that the institution has recorded its best results in its 43 year history, supported by capital and liquidity ratios that remain within board approved risk appetite, regulatory thresholds and international standards.

The Bank reiterated its commitment to transparency and prudent financial management, stating that it will continue to maintain confidence among customers, shareholders and stakeholders while supporting economic activity across the Maldives.