The amount of money circulating in the Maldivian economy, measured as broad money, increased by 17 percent, according to statistics published in the Maldives Monetary Authority’s (MMA) Quarterly Economic Bulletin. The latest quarterly report shows broad money reaching MVR 66.3 billion at the end of September 2025, reflecting an acceleration compared to growth recorded earlier in the year, supported by increases in both net domestic assets (NDA) and net foreign assets (NFA) across the banking system, alongside strengthening deposit activity.
The MMA reported that net domestic assets increased by 11 percent during the period, largely reflecting a 22 percent rise in investments in government treasury bills and a 6 percent increase in private sector lending. Growth in NDA was mainly concentrated within commercial banks, while the NDA of the MMA recorded an annual decline. Deposits held at banks also rose, contributing to the expansion in money supply and indicating sustained confidence in the financial system at a time when economic activity continued to broaden beyond peak tourism months.
On the composition of money supply, other deposits including savings and time deposits accounted for 30 percent of total broad money and expanded by 31 percent year-on-year. This growth was driven mainly by increases in time deposits denominated in both local and foreign currencies, pointing to stronger long-term savings and treasury management behaviour among households and businesses. Demand deposits, which made up 64 percent of money supply, grew by 12 percent, showing a notable acceleration compared to the growth recorded in June 2025, and reinforcing signs of improving transactional activity in the domestic economy.
To manage liquidity conditions, the MMA resumed Open Market Operations (OMO) in July 2025 through structural liquidity operations, signalling a proactive approach to maintaining stable money market conditions. As part of recent monetary policy adjustments, the central bank reduced key policy rates by lowering the Standing Deposit Facility rate to 0.50 percent and the Standing Lending Facility rate to seven percent. The foreign currency minimum reserve requirement was also reduced to five percent to enhance foreign currency liquidity, while the local currency requirement remained unchanged at 10 percent, supporting the broader objective of ensuring adequate liquidity for the banking sector while safeguarding monetary stability.
The quarterly bulletin also noted that real GDP is estimated to have grown year-on-year in the third quarter of 2025, following growth of 6.7 percent in the previous quarter, underlining continued resilience in national output. Economic expansion was driven mainly by the tourism sector, which remains the Maldives’ most significant economic pillar and a key source of foreign exchange earnings. The report highlighted positive momentum in construction, real estate, and fisheries as well, reflecting continued investment activity and improving sectoral performance, while wholesale and retail trade weighed on overall growth during the quarter. Inflation eased to 4.0 percent, reflecting slower growth in restaurant and café service costs, a development that may support consumer confidence while preserving the Maldives’ competitiveness as a premium destination.
Tourism-led growth continues to carry significant spillover benefits across the wider economy, with international visitor spending supporting employment, business activity, and investment flows across multiple atolls. The sector’s performance also strengthens foreign currency inflows, supporting import capacity and financial stability, while enabling resorts and tourism-linked enterprises to sustain high service standards and product upgrades that appeal to global travellers. As resorts continue to expand experiences in wellness, culinary offerings, marine excursions, and sustainable operations, the sector’s contribution remains central to growth outcomes and the broader business environment.
In the external sector, the MMA reported that the merchandise trade deficit narrowed to USD 815.9 million in the third quarter of 2025, supported by higher exports particularly frozen skipjack tuna and a marginal decline in imports. The improved trade position reflects positive developments in export performance and indicates the importance of strengthening productive sectors alongside tourism, particularly fisheries, which continues to serve as a strategic industry with global demand and value-added potential.
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