Financial Squeeze: MMA assets drop to MVR 29.6bn as foreign liabilities mount
26 ޖުލައި 2026 | އާދީއްތަ 08:05The Maldives Monetary Authority reported MVR 12.9 billion in foreign assets and MVR 15.8 billion in local assets, primarily held in government bonds. Total liabilities reached MVR 27.8 billion, driven by commercial bank deposits and currency in circulation. The central bank maintained MVR 1.8 billion in total equity and reserves by June 2026.
The building housing the Maldives Monetary Authority, the central bank of the island nation. | Alamy
The Maldives Monetary Authority (MMA) saw its total assets experience a marginal drop to MVR 29,564,158,230 by the conclusion of June 2026, dropping down from the MVR 29,968,348,794 logged at the end of May 2026, as detailed in the central bank's released "Statement of Financial Position."
A deeper look into the central bank's accounting records reveals that foreign currency financial assets totaled MVR 12.9 billion. Within this category, MVR 8.1 billion was maintained as cash and bank balances abroad, alongside MVR 3.3 billion invested in securities. The report also highlights MVR 124.2 million held in monetary gold reserves and MVR 451.9 million tied to International Monetary Fund accounts.
On the domestic front, local currency financial assets reached MVR 15.8 billion. The overwhelming majority of these local assets comprised MVR 13.9 billion placed in Government Treasury Bonds. Additionally, cash and local bank deposits totaled MVR 1.1 billion, with another MVR 600 million registered as investments in subsidiary enterprises. Non-financial assets came out to MVR 870.3 million, covering gold and silver holdings, physical inventory, and property, plant, and machinery.
On the balance sheet's opposing side, total liabilities for the central bank reached MVR 27.8 billion by June's end. Foreign currency obligations made up MVR 9.4 billion of that sum, incorporating MVR 2.3 billion in commercial bank deposits, MVR 871.5 million due to the Asian Clearing Union, and MVR 4.9 billion categorized under other foreign currency liabilities.
Local currency liabilities accounted for MVR 18.2 billion, dominated by MVR 9.4 billion in commercial bank deposits. Furthermore, paper money and coins circulating in the economy totaled MVR 5.07 billion, while securities sold via repurchase agreements hit MVR 2.8 billion.
The central institution's total equity was calculated at MVR 1.8 billion, consisting of MVR 50 million in paid-in capital and MVR 1.7 billion in reserve funds. The financial statement notes that these reserves are composed of both the General Reserve and the Foreign Asset Revaluation Reserve, which absorbs changes in currency exchange valuations.
