BML says USD net open position restored to positive levels
Bank of Maldives (BML) has said its Net Open Position (NOP) in United States dollars, which had deteriorated from December 2020, was restored to positive levels during the course of last year and again more recently.
In a statement, the bank said the NOP in US dollars had reached a short position of 20 per cent in September 2024, meaning it had oversold about USD 200 million at that point.
BML said the NOP measures the difference between a bank’s foreign currency assets and liabilities at a given time and reflects exposure to exchange rate movements. It said this should not be confused with liquidity, which relates to a bank’s ability to meet short-term obligations such as customer withdrawals and payment commitments.
According to the bank, the main risk arising from the short position was that a devaluation of the Maldivian rufiyaa would have exposed the bank to foreign exchange losses on that amount.
The bank said the short position was actively addressed through coordinated measures and with the support of the Ministry of Finance and Planning.
“With the strong support of the Ministry of Finance and Planning, the Bank successfully restored its NOP to positive levels during the course of last year, and again more recently, ensuring full alignment with regulatory requirements,” the statement said.
BML also said that while correcting the NOP short position, it continued normal business operations and sold more than USD 600 million to meet the needs of individuals, businesses and corporates, including telegraphic transfer payments and card-related transactions.
The bank said US dollar liquidity continues to be managed through diversified funding sources, treasury operations and coordination with stakeholders to ensure customer and market requirements are met without disruption.
BML said its financial performance remains strong, citing record results in its 43-year history. The bank added that its capital and liquidity ratios remain within the risk appetite set by the board, regulatory requirements and international standards.
The statement follows remarks made by BML Chief Executive Officer and Managing Director Mohamed Shareef during the bank’s Annual General Meeting on 28 March 2026 and in a public address delivered the following night.
BML said it remains committed to transparency, prudent financial management and maintaining the confidence of customers, shareholders and stakeholders.
