The Maldives Monetary Authority’s balance sheet expanded by MVR 1.52 billion in July 2026, supported primarily by a substantial increase in local currency financial assets, particularly government treasury bond holdings, according to the Authority’s latest financial position.
Total assets held by the MMA reached MVR 31.08 billion at the end of July, up from MVR 29.56 billion in June. This represents a monthly increase of 5.1 per cent and reflects notable changes in the composition of the central bank’s domestic and foreign currency financial assets during the period.
Local currency financial assets recorded particularly strong growth, increasing by MVR 2.44 billion, or 15.5 per cent, to MVR 18.19 billion. The expansion was largely driven by higher holdings of government treasury bonds, which increased from MVR 13.93 billion in June to MVR 16.33 billion in July.
The MVR 2.40 billion monthly increase in treasury bond holdings represented growth of approximately 17.2 per cent. The MMA records this balance based on the outstanding principal value of government bonds held by the Authority. Its investments in government Treasury bills also increased during July, rising by MVR 6.3 million to MVR 69.2 million.
The increase in domestic financial assets came as foreign currency financial assets declined by MVR 930.2 million during the month, reaching MVR 12.01 billion at the end of July. Cash and balances held with banks decreased by MVR 758.3 million to MVR 7.43 billion, while short-term loans extended to commercial banks declined by MVR 185 million to MVR 555.1 million.
Changes were also recorded on the liabilities side of the MMA’s balance sheet. Local currency deposits maintained by the government and government institutions increased significantly from MVR 145.4 million in June to MVR 2.03 billion in July. This represented a monthly increase of approximately MVR 1.89 billion.
The increase in government-related deposits was partly offset by a MVR 316.7 million reduction in commercial bank balances maintained with the MMA. The changes demonstrate continued movements in domestic liquidity and financial flows across government institutions, commercial banks and the central monetary authority.
Securities sold under repurchase agreements declined by MVR 59 million during July to MVR 2.79 billion. The MMA uses such arrangements as part of its open market operations to manage and absorb excess liquidity within the domestic financial system, supporting monetary management and financial stability objectives.
Currency in circulation increased moderately during the month, rising by MVR 24.2 million to MVR 5.10 billion. The relatively modest change indicates that the broader expansion of the MMA balance sheet during July was primarily associated with financial asset and deposit movements rather than a significant increase in physical currency circulation.
Overall liabilities increased by MVR 1.40 billion to MVR 29.20 billion at the end of July, while the Authority’s equity strengthened by MVR 117.4 million to MVR 1.89 billion.
Meanwhile, the difference between the MMA’s foreign currency financial assets and corresponding foreign currency liabilities narrowed during the month. The gap decreased from MVR 3.45 billion in June to MVR 2.63 billion in July as the composition of foreign currency assets and liabilities changed.
The latest balance sheet figures provide an important indication of developments within the country’s monetary and financial framework as the government continues its broader fiscal and economic management agenda. The increase in domestic financial assets, alongside active liquidity management by the central bank, highlights the evolving composition of financial flows within the Maldivian economy.
The MMA balance sheet represents the Authority’s accounting position at a specific point in time and should not, on its own, be interpreted as a direct measure of the Maldives’ gross international reserves. Gross international reserves are assessed separately and incorporate the relevant reserve assets maintained by the monetary authority.
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