MMA Increases Dollar Supply to Banks Ahead of Ramadan to Safeguard Food Imports

The Maldives Monetary Authority (MMA) has increased US dollar allocations to local banks by 32 percent in a move aimed at ensuring uninterrupted imports of essential food items ahead of the holy month of Ramadan.

The special arrangement, which takes effect from 17 February 2026 and will remain in place for three weeks, is designed to address the seasonal surge in demand for foreign currency during Ramadan,  a period traditionally marked by higher consumption and increased import volumes.

According to the central bank, the temporary increase in foreign exchange sales to commercial banks will provide additional liquidity, enabling banks to more efficiently facilitate payments to international suppliers. The measure is expected to ease pressure on importers and reduce the risk of delays in the supply chain at a time when demand for staple food items typically rises across the country.

Ramadan consistently sees heightened demand for essential commodities, including rice, flour, sugar, cooking oil and other household staples. Importers often require increased access to US dollars during this period to settle invoices with overseas suppliers. The MMA stated that the enhanced allocation is intended to mitigate potential bottlenecks and ensure that goods remain readily available in the domestic market.

The Authority emphasized that the decision forms part of its broader mandate to maintain stability in the foreign exchange market and support the national banking system. By proactively responding to predictable seasonal fluctuations in currency demand, the MMA aims to safeguard price stability and protect consumers from possible supply disruptions.

The central bank further noted that such targeted interventions reflect its ongoing policy approach to managing liquidity pressures during peak economic periods, particularly in preparation for Ramadan, when ensuring food security remains a national priority.