MVR 3 Billion Withdrawn Through Open Market Operations to Reduce Rufiyaa Liquidity

As a result of these measures, surplus Rufiyaa liquidity in the banking system declined by 39 percent by the end of June 2026.

Mohamed Hilmy

24 August 2026, 08:42

The Maldives Monetary Authority (MMA) has announced the absorption of MVR 3 billion from the banking system through Open Market Operations (OMO) aimed at managing surplus Maldivian Rufiyaa liquidity.

After a hiatus of more than a decade, the MMA reintroduced reverse repurchase operations on July 23, 2025. This strategic intervention was implemented to mitigate the adverse pressures on the Rufiyaa exchange rate caused by excess liquidity and the subsequent rise in demand for foreign currency.

As a result of these measures, surplus Rufiyaa liquidity in the banking system declined by 39 percent by the end of June 2026. The average surplus liquidity, which stood at MVR 7.0 billion in June 2025, was reduced to approximately MVR 4 billion by the end of June 2026.

Furthermore, the MMA noted the commencement of Main Liquidity Operations (MLO) in December 2025. This followed an upward adjustment of rates across all tenors of Structural Liquidity Operations by 100 basis points in November 2025, with a subsequent increase of an additional 10 basis points in August 2026.

MVR 3 Billion Withdrawn Through Open Market Operations to Reduce Rufiyaa Liquidity

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