MMA Urges Government to Enact Reforms as Dollar Hits Record High in Black Market

The Maldives Monetary Authority (MMA) urged the government to implement economic reforms as the US dollar hit a record high on the black market, warning of rising pressure on the rufiyaa from years of excessive spending and debt monetisation during the COVID-19 pandemic. The MMA said the banking system has excess liquidity of MVR 7 billion as of June, a 178% increase from 2020. The central bank has resumed open market operations, withdrawing MVR 2.1 billion on July 23. The MMA called for fiscal reforms to reduce spending and increase revenue.

The Maldives Monetary Authority (MMA) urged the government to implement economic reforms as the US dollar hit a record high on the black market, warning of rising pressure on the rufiyaa from years of excessive spending and debt monetisation during the COVID-19 pandemic. The MMA said the banking system has excess liquidity of MVR 7 billion as of June, a 178% increase from 2020. The central bank has resumed open market operations, withdrawing MVR 2.1 billion on July 23. The MMA called for fiscal reforms to reduce spending and increase revenue.

The Maldives Monetary Authority (MMA) urged the government to implement economic reforms as the US dollar hit a record high on the black market, warning of rising pressure on the rufiyaa from years of excessive spending and debt monetisation during the COVID-19 pandemic. The MMA said the banking system has excess liquidity of MVR 7 billion as of June, a 178% increase from 2020. The central bank has resumed open market operations, withdrawing MVR 2.1 billion on July 23. The MMA called for fiscal reforms to reduce spending and increase revenue.

This story involves 1 source and may affect public understanding of dollar black market / rufiyaa pressure.