BML expects dollar inflows to strengthen as Maldives enters peak tourism season
Bank of Maldives (BML) expects foreign currency inflows to strengthen during the final quarter of 2026 as the Maldives approaches its peak tourism season, following a seasonal decline in US dollar receipts during September.
According to the bank’s third-quarter report released on Thursday, foreign currency inflows totalled USD 240 million in September, approximately 27% below the monthly average recorded during the first nine months of the year.
The bank said September had historically been the weakest month for foreign currency inflows, reflecting seasonal fluctuations in tourism activity.
Foreign currency inflows to the Maldives are generally strongest during the peak tourism season from December to April and moderate during the southwest monsoon period between May and October.
BML said September 2025 had followed a similar pattern, with foreign currency inflows of USD 257 million, approximately 17% below that year’s monthly average. The month also recorded the largest net foreign currency outflow of 2025.
Inflows subsequently increased during the final quarter of last year, reaching USD 461 million in December 2025, approximately 80% higher than the September figure.
The bank said it anticipated a similar seasonal recovery as tourism activity increased towards the end of 2026.
Despite the September slowdown, BML reported foreign currency inflows of USD 2.96 billion through inward remittances and net card settlements during the first nine months of 2026, an increase of 15% compared to the corresponding period last year.
The bank attributed the volume of foreign currency receipts partly to its relationships with the tourism industry, describing itself as the country’s primary banking partner for the sector.
BML noted that the Maldives’ foreign currency earnings remained heavily concentrated in tourism, while demand for US dollars continued throughout the year for imports, debt servicing, overseas education, medical treatment and household expenditure.
September also coincided with increased foreign currency demand for education expenses at the start of the academic year. The bank provided USD 8.2 million for overseas education during September, its highest monthly allocation for the year and almost double its monthly average.
BML said the cost of obtaining US dollar funding from international markets had increased due to elevated interest rates, geopolitical tensions and more selective lending to tourism-dependent economies.
To address these pressures, the bank said it would continue diversifying its foreign currency funding sources and seeking long-term financing from international markets.
The bank also said it would prioritise the processing of corporate foreign currency payments relating to trade, debt servicing and tourism operations.
BML expects stronger foreign currency receipts during the final quarter to support its liquidity management as the country’s tourism industry enters its busiest period.
