The Maldives Monetary Authority (MMA) has revealed a significant decline in the amount of US dollars deposited by resorts into local banks, highlighting concerns over foreign exchange inflows in the country.
According to MMA, resorts deposited 74 percent of their revenue, approximately $2.5 billion, in Maldivian banks in 2019. However, this percentage has dropped to 52 percent, equating to $2.3 billion, in recent years.
The report also highlighted a decrease in the amount of dollars sold by resorts to local banks. In 2019, resorts sold $152.2 million, representing 6 percent of their total deposits. By comparison, the most recent figures show this has dropped to just $68 million, or 3 percent of their deposits.
To tackle the challenges arising from this decline, the MMA has announced plans to amend monetary policies aimed at increasing foreign exchange inflows into the banking system. These adjustments are expected to address the ongoing issues within the foreign exchange market, which have become a growing concern for the country's economy.
According to MMA, resorts deposited 74 percent of their revenue, approximately $2.5 billion, in Maldivian banks in 2019. However, this percentage has dropped to 52 percent, equating to $2.3 billion, in recent years.
The report also highlighted a decrease in the amount of dollars sold by resorts to local banks. In 2019, resorts sold $152.2 million, representing 6 percent of their total deposits. By comparison, the most recent figures show this has dropped to just $68 million, or 3 percent of their deposits.
To tackle the challenges arising from this decline, the MMA has announced plans to amend monetary policies aimed at increasing foreign exchange inflows into the banking system. These adjustments are expected to address the ongoing issues within the foreign exchange market, which have become a growing concern for the country's economy.
