BML says dollar liquidity remains robust as NOP returns to positive levels

Bank of Maldives (BML) has issued a statement assuring the stability of its foreign exchange liquidity, despite previous exposure risks related to its Net Open Position (NOP). The bank emphasized that its US dollar liquidity is stable and actively managed, dismissing concerns that recent figures indicate weakness. BML explained that the NOP, which measures the gap between foreign currency assets and liabilities, is often misunderstood as a liquidity indicator. The bank confirmed that its NOP had declined since December 2020, reaching a short position of 20% in September 2024, equivalent to an oversold exposure of approximately USD 200 million. However, BML stressed that this did not affect its operational liquidity or ability to meet customer obligations.

Bank of Maldives (BML) has issued a statement assuring the stability of its foreign exchange liquidity, despite previous exposure risks related to its Net Open Position (NOP). The bank emphasized that its US dollar liquidity is stable and actively managed, dismissing concerns that recent figures indicate weakness. BML explained that the NOP, which measures the gap between foreign currency assets and liabilities, is often misunderstood as a liquidity indicator. The bank confirmed that its NOP had declined since December 2020, reaching a short position of 20% in September 2024, equivalent to an oversold exposure of approximately USD 200 million. However, BML stressed that this did not affect its operational liquidity or ability to meet customer obligations.

Bank of Maldives (BML) has issued a statement assuring the stability of its foreign exchange liquidity, despite previous exposure risks related to its Net Open Position (NOP). The bank emphasized that its US dollar liquidity is stable and actively managed, dismissing concerns that recent figures indicate weakness. BML explained that the NOP, which measures the gap between foreign currency assets and liabilities, is often misunderstood as a liquidity indicator. The bank confirmed that its NOP had declined since December 2020, reaching a short position of 20% in September 2024, equivalent to an oversold exposure of approximately USD 200 million. However, BML stressed that this did not affect its operational liquidity or ability to meet customer obligations.

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