The Maldives sent USD 167.6 million in personal remittances abroad last year, according to the annual report released by the Maldives Monetary Authority (MMA).
The central bank’s data reveals a significant increase in both the value and volume of money flowing out of the country, a trend overwhelmingly driven by the foreign workforce.
The report states that outward remittances grew by eight percent in value year-on-year, reaching the USD 167.6 million figure. This was facilitated through 139,000 individual transactions, which saw a substantial 13 percent increase. A striking 94 percent of these outward transactions were made by foreigners working in the Maldives, underscoring their pivotal role in the economy and their practice of sending earnings to their home countries. The volume of these foreign-led transactions alone surged by 89 percent.
In contrast, the inflow of remittances into the Maldives for non-commercial purposes was markedly lower. Total inflows were valued at USD 2.9 million across 3,000 transactions, representing a 5 percent decline in volume and a 1 percent drop in value compared to the previous year. The MMA noted that Maldivians living abroad are the primary source of these incoming funds, accounting for 82 percent of all inward transactions. The value received by Maldivians saw a four percent increase, while sums received by foreigners in the country fell by 20 percent.
The MMA attributed the sharp rise in outward remittances to an increase in transfers being conducted through official banking channels, suggesting improved tracking and formalisation of these financial flows within the economy.