Open Market Operations

The Maldives Monetary Authority (MMA) conducts Open Market Operations (OMO) with licensed commercial banks in order to manage the liquidity in the banking system by mopping-up or injecting liquidity. The terms and conditions for the issuance of the Repurchase and Reverse Repurchase facilities are contained in the ‘Instructions Manual for Open Market Operations’.

All Reverse Repurchase and Repurchase transactions carried out in terms of the Part I, and II of these Operating Instructions are subject to the provisions of the Master Repurchase Agreement.

Reverse Repurchase
Sale of securities by MMA on an auction basis with the agreement to buy them back at a pre determined date at a pre determined price.

Repurchase
Purchase of securities by MMA on an auction basis with the agreement to sell them back at a pre determined date at a pre-determined price.