Bank of Maldives (BML) has clarified the difference between the US dollar Net Open Position (NOP) and dollar liquidity, emphasising that both remain strong.

In a statement, the bank explained that NOP refers to the difference between foreign currency assets and liabilities, indicating exposure to exchange rate fluctuations rather than the ability to supply US dollars. Liquidity, on the other hand, reflects the bank’s capacity to meet short-term obligations such as withdrawals and remittances.

BML noted that its NOP reached a low point in September 2024, with a 20 percent short position after selling an additional $200 million. The bank explained that this posed a potential foreign exchange risk if the Maldivian Rufiyaa weakened, but did not affect customer access to funds or remittance services.

The bank added that steps have since been taken, with support from the Finance Ministry, to strengthen its NOP position beyond regulatory requirements.

BML also highlighted that over $600 million was sold last year to support individuals, businesses, and corporate transactions. Dollar liquidity continues to be managed through funding instruments and treasury operations to ensure uninterrupted services.

Additionally, the bank has issued $365 million in new loans to the tourism sector since 2024, with its total loan portfolio reaching $585 million by the end of the first quarter.