The Maldives Monetary Authority (MMA) recorded changes in the composition of its foreign currency assets in September, with lower cash and investment holdings partly offset by an increase in short-term lending to commercial banks, according to the authority’s latest statement of financial position.
Foreign currency financial assets, reported in Maldivian rufiyaa, stood at MVR 11.09 billion at the end of September, compared with MVR 12.13 billion in August. This represents a monthly decline of approximately MVR 1.05 billion, or 8.6 percent.
The largest change was recorded in foreign currency cash and bank balances, which declined by MVR 1.09 billion to MVR 6.68 billion. Investments in foreign currency securities also decreased by approximately MVR 378 million during the month.
The decline was partly offset by a notable increase in short-term lending to commercial banks. Outstanding loans rose from MVR 585.96 million in August to MVR 1.02 billion in September, representing an increase of nearly 75 percent. As a result, a greater proportion of MMA’s foreign currency assets was held in the form of claims on domestic banks, while the share held in cash, deposits and securities declined.
MMA’s foreign currency liabilities also decreased during September, falling from MVR 9.59 billion to MVR 9.16 billion. The reduction was partly associated with a substantial decline in amounts payable to the Asian Clearing Union.
Government foreign currency deposits held with MMA decreased during the month, while foreign currency balances maintained by commercial banks with the authority increased. The figures reflect movements in institutional deposits and international payment obligations alongside changes in MMA’s asset structure.
Foreign currency assets continued to exceed corresponding liabilities, although the difference narrowed from MVR 2.54 billion in August to MVR 1.92 billion in September. This accounting position is distinct from the Maldives’ official usable reserve figures, which provide a more specific indication of immediately available foreign currency resources.
On the domestic side, MMA’s balance sheet remained broadly stable. Government treasury bonds stood at MVR 16.30 billion and represented more than half of the authority’s total assets. As these are rufiyaa-denominated claims on the Government, they serve a different financial function from foreign currency assets used for external payment requirements.
The September figures indicate a shift in the composition of MMA’s foreign currency portfolio, with increased lending to the banking sector accompanying reductions in cash holdings and securities. The broader impact on the country’s external payment position will depend on the availability and maturity of foreign currency assets, upcoming obligations and the performance of official reserves.
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