The Maldives Monetary Authority (MMA) has increased the amount of dollars it supplies to banks.

MMA stated today that it is increasing the dollar supply to Maldivian banks for business purposes, including TTs for imports and LC payments, by 10 percent. MMA said this change will be implemented starting this week, and as a result, the dollar sales by banks to small and medium enterprises will increase by 40 percent.

MMA has increased the foreign currency that banks must sell to MMA each week from 60 to 90 percent since June this year. However, MMA said that the additional 30 percent converted by banks is being sold back to the banks every week.

MMA said such a change was necessary to provide foreign currency needed by businesses through banks in a more robust an and equitable manner than at present, using the foreign currency sold by banks each week.

The 30 percent given back to banks is used for various essential needs such as food imports. MMA said that a large percentage of this amount is used to provide foreign currency assistance to small and medium enterprises.

MMA stated that increasing the dollar amount given to small and medium enterprises through banks by 50 percent is a goal.