The primary job of the Maldives Monetary Authority (MMA, the central bank) is to maintain price stability, although legislation also tasks it with preserving an adequate level of international reserves and promoting non-inflationary economic growth. The MMA achieves monetary stability partly through the peg between the currency (the rufiyaa) and the US dollar. In view of this peg, the MMA has little scope to conduct independent monetary policy. Nonetheless, it uses minimum reserve requirements for banks and open-market operations as instruments to control credit creation and money supply. We expect the MMA to keep the minimum reserve requirement low in 2021-22 and to maintain ample liquidity in the economy to support recovery. We believe that the central bank will maintain its accommodative policy stance in the next two years.