Although foreign currency inflows to the Maldives Monetary Authority (MMA) have increased, the majority of US dollar earnings are being spent on loan repayments, MMA Governor Ahmed Munawar has stated.

Speaking at a press conference held at the President's Office today, Munawar noted that despite economic slowdowns caused by international conflict, the tourism industry is currently experiencing substantial growth. In this regard, he highlighted that even with a slight drop in visitor arrivals, foreign currency revenue generated from tourism has risen.

The Governor stated that foreign exchange revenue continues to increase and that the country is not currently facing a foreign currency shortage.

"Looking at the allocation for the major part of this year—out of 100 percent—up through the month of July, 56 percent is spent on servicing debt," Munawar said.

Munawar explained that even though dollar sales to commercial banks have been expanded, a major portion of foreign currency this year has been directed toward debt repayments. Addressing public questions regarding the utilization of state dollar earnings, he emphasized that loan servicing remains the single largest foreign currency expenditure for the state.