New Stock of MVR 20 Banknotes Brought In to Address Cash Shortage

The Maldives Monetary Authority has brought in a new stock of MVR 20 banknotes to address a shortage of the denomination experienced in the local market.

The central bank said the newly printed notes were brought to the Maldives today to replenish the existing supply, although the exact quantity has not been disclosed. The move comes amid increased demand for lower-denomination cash, particularly ahead of the holy month of Ramadan.

According to Maldives Monetary Authority, the periodic printing and introduction of banknotes is a standard currency management practice to ensure adequate circulation within the economy. Demand for specific denominations fluctuates depending on public spending patterns and the cash distribution practices of financial institutions.

Information suggests that the recent shortage of MVR 20 notes was mainly driven by higher cash withdrawals from ATMs and an increase in cash-based transactions ahead of Ramadan. Several local businesses have also reported difficulties in obtaining lower-denomination notes for everyday transactions.

The MMA’s 2024 annual report indicates that the total value of currency currently in circulation stands at MVR 4.14 billion. Lower-denomination notes such as MVR 20, MVR 10 and MVR 5 typically circulate more rapidly than higher-value notes, making them more prone to wear and tear and requiring more frequent replacement.

Official statistics further show that, after the MVR 100 note, the MVR 50, MVR 20 and MVR 10 denominations are among the most frequently reprinted banknotes in the Maldives. Earlier this month, the MMA also brought in a new stock of MVR 100 banknotes to address a similar shortage, following another replenishment of the same denomination last year.

The latest addition is expected to ease pressure on the availability of MVR 20 banknotes across banks, ATMs and businesses in the coming days.