STRATEGIC Goals



Goal 1 Goal 2 Goal 3a Goal 3b Goal 4 Goal 5 Goal 6

GOAL1: STRENGTHEN MONETARY POLICY TO MAINTAIN PRICE STABILITY

We will work to enhance our monetary policy transmission mechanism through de-dollarisation and by pursuing the most appropriate exchange rate regime for the Maldives to maintain price stability. In line with these changes, our monetary policy instruments will be redesigned by establishing added incentive mechanisms for local currency. Legislative and operational changes will be considered to develop a well-functioning foreign exchange market.

STRATEGIC OBJECTIVES POLICY MEASURES
Develop an Effective Monetary Policy Framework
  • Active management of domestic currency liquidity by enhancing the MMA’s market operations.
  • Review the minimum reserves requirement to support monetary policy transmission mechanism.
  • Develop an integrated macroeconomic forecasting model to facilitate better and informed policy decisions.
Design and Implement Strategies for De-dollarisation and to Develop the Foreign Exchange Market
  • Provide incentives to banks and other economic agents by making monetary policy relatively more favourable to Maldivian rufiyaa.
  • Develop a comprehensive legislative framework to strengthen foreign exchange market operations and supervision.
  • Review the current exchange rate regime in order to maintain exchange rate stability.
  • Design and implement other policy reforms to support de-dollarisation.
Design and Implement Measures to Accumulate Foreign Exchange Reserves
  • Develop an effective framework for intervention in the foreign exchange market.
  • Review measures to accumulate reserves.
  • Enhance reserve management activities.
Increase Money Market Activities
  • Develop polices and strategies to promote interbank money market activities.

GOAL2: FINANCIAL SECTOR STABILITY

We will continue to regulate and supervise the financial sector with the objective of promoting financial stability and an efficient financial system, while maintaining public confidence.

STRATEGIC OBJECTIVES POLICY MEASURES
Improve the MMA’s Financial Sector Supervisory Framework
  • Enhance the off-site supervisory function of financial institutions.
  • Enhance the on-site supervisory function of financial institutions.
Improve and Establish the Necessary Supporting Infrastructure
  • Strengthen the legislative framework for the Other Financial Institutions.
  • Strengthen the legislative framework for the Insurance Industry.
  • Introduce a policy holder protection scheme.
  • Strengthen the liquidity framework for banks.
  • Establish a mechanism for recovery and resolution.
Promote Good Governance Practices in the Financial Sector
  • Strengthen the corporate governance requirements and risk management practices in the financial sector.

GOAL3A: ENSURE SAFE AND EFFICIENT PAYMENTS SYSTEM

One of our foremost priorities over the coming five years is the development of a safe and robust payments system infrastructure that is conducive to the efficient and smooth functioning of economic activities while promoting innovation and economic growth. We will also continue to promote a safe and secure currency while also ensuring its management is in line with the best international practices and to the requirements of the economy.

STRATEGIC OBJECTIVES POLICY MEASURES
Develop Payments Infrastructure
  • Develop a National Payments Plan which would facilitate fast, convenient, secure and affordable means of making payments across the nation.
  • Establish a National Payments Council.
Develop Legal and Governance Framework for the Payments System
  • Establish a comprehensive legislative framework for the payments system.
Enhance Efficiency of Payments System
  • Establish Straight Through Processing(STP) at MMA.
  • Enforce STP within banks to integrate their core banking system with the payments system.
Promote the Usage of Electronic Payments
  • Develop a phased approach to reduce the usage of cash and cheques for government payments.
  • Design and develop outreach and communication strategies to raise awareness and financial literacy, trust, and responsible usage of electronic payment services and e-money products.
  • Regular publications on the development of the payments system and related research.
Improve Efficiency in Currency Management and Services
  • Enhance and strengthen banknote and coin processing and destruction mechanisms at the MMA.
  • Establish a nation wide efficient cash distribution and collection mechanism to cater for the demand.
Strengthen Currency to Combat Counterfeiting
  • Establish an ongoing research process for the development of the security features to combat counterfeiting threats.

GOAL3b: TRANSFORM AND DEVELOP BANKING AND AGENCY SERVICES TO THE GOVERNMENT

We will work towards increasing the efficiency of the banking services to the government, and developing the government securities market in line with the international best practices and the requirements of the economy.

STRATEGIC OBJECTIVES POLICY MEASURES
Develop Banking Services to the Government
  • Develop and establish the corebanking infrastructure.
  • Develop the institutional framework for processing government receipts and payments.
Develop the Government Securities Market
  • Develop a legislative and supportive infrastructure for government securities.
  • Develop the government securities secondary market and widen the investor base.

GOAL4: ENHANCE MMA’S OPERATIONAL EFFICIENCY AND GOVERNANCE

We will work to improve the operational efficiency of the MMA. To this end, we intend to focus on the automation of operational processes to enhance productivity, develop the human resources of the MMA, adhere to international best practices in governance and risk management, enhance the robustness and security of IT infrastructure, improve communication with the public and promote a conducive work environment for our staff.

STRATEGIC OBJECTIVES POLICY MEASURES
Enhance Work Efficiency Through Automation
  • Implement process automation to streamline critical processes of human resource management, procurement operations and budgeting.
  • Improve record keeping and retrieval through digital archive management software and implementation of institutional memory software.
Attract, Retain and Develop a Talented Workforce
  • Streamline the recruitment process.
  • Assimilate new staff to the organisation more efficiently and effectively.
  • Provide an effective and competitive reward system.
  • Develop the human capacity of staff.
  • Develop a cross-functional and multi-skilled labour force.
  • Retain the qualified and experienced staff.
  • Improve work culture and promote staff welfare
Improve the Effectiveness of MMA’s Governance, Controls and Risk Management
  • Strengthen the MMA’s institutional framework to strengthen autonomy, transparency and accountability within the MMA by strengthening internal audit and enactment of a new MMA Act.
  • Implement an Enterprise Risk Management framework within MMA.
  • Develop and implement a formal Business Continuity Plan and Disaster Recovery Plan.
Enhance Efficiency, Robustness and Security of IT Infrastructure
  • Enhance the overall security of IT systems & infrastructure to counter and combat cyber security threats.
  • Improve system administration through remote device management, centralised network management and smart deployment of IT systems.
  • Establish measures to provide uninterrupted internet services and improve overall redundancy and backup systems.
Improve IT Governance
  • Formulate and enforce IT Governance Policy.
Improve Communication with Stakeholders and Public
  • Develop and implement a communication plan.
  • Capacity development in media and communication.
  • Develop a studio in MMA for media purposes.
Implement an Effective Public Outreach Programme
  • Dissemination of research findings effectively.
  • Conduct macroeconomic awareness sessions to the general public.
  • Develop and enhance external query database accessible to the general public through the MMA website.
  • Develop National Summary Data page in the website according to the IMF's Special Data Dissemination Standard (SDDS).
  • Establish a money museum.
Promote a Conducive, Eco-friendly Work Environment
  • Construct a new, eco-friendly MMA building to overcome the space and security limitations in the current MMA building.
  • Develop staff support areas.
  • Implement collaborative workspace to facilitate teamwork.
Enhance MMA Security
  • Upgrade security system.
  • Review and upgrade the security Standard Operating Procedure.

GOAL5: ENHANCE MACROECONOMIC RESEARCH AND STATISTICS

We will strive to enhance macroeconomic research and statistics by improving the coverage and quality of data, prioritising policy relevant research, and improving public outreach platforms to facilitate policy decisions, and undertake efforts to increase macroeconomic awareness among the public.

STRATEGIC OBJECTIVES POLICY MEASURES
Establish and Implement a Research Agenda
  • Develop a research agenda as a guideline to steer policy relevant and non-policy relevant research.
  • Establish and implement mechanisms to conduct inter-departmental and other relevant agency research.
  • Conduct research on prioritised areas.
Enhance Economic Analysis and Research
  • Develop and enrich the Quarterly Business Survey (QBS) and use QBS data as a supplementary tool for economic analysis.
  • Establish a monitoring mechanism for reviewing international economic developments regularly.
  • Improve the quality of the research output of the MMA.
Strengthen Data Quality and Data Dissemination
  • Improve collection and coverage of macroeconomic and financial data.
  • Establish an efficient data management system.
  • Develop a comprehensive statistical system geared towards meeting the key dimensions and elements of the SDDS.

GOAL 6: FINANCIAL SECTOR DEVELOPMENT AND FINANCIAL INCLUSION

We will aim to provide all-inclusive access to affordable financial services, through innovative mechanisms to allow competition, efficiency and diversity in the financial sector. In our efforts to ensure a financially literate population capable of making informed decisions, we will be implementing a collaborative and comprehensive financial literacy programme. Furthermore, we will seek to establish a sound comprehensive legislative framework for both financial consumer protection and Islamic finance to strengthen the financial sector of the Maldives.

STRATEGIC OBJECTIVES POLICY MEASURES
Improve Financial Inclusion and Enhancing Access to Finance
  • Formulate a National Financial Inclusion Strategy.
  • Explore innovative channels to enhance access to finance.
  • Establishment of specialised financial institutions.
  • Enhance the functions of the Credit Information System.
  • Strengthen the legislative framework for the Credit Information System.
  • Establish a Secured Transactions Registry for moveable properties, in order to enable lenders to easily obtain information on such properties.
Improve Financial Literacy
  • Formulate a National Financial Literacy Plan.
Enhance Financial Consumer Protection
  • Establish a comprehensive legislative framework for financial consumer protection and to establish a framework for market conduct and supervision.
  • Promote financial consumer protection awareness in collaboration with financial institutions.
Promoting the Development of Islamic Finance
  • Create an enabling policy environment for Islamic finance to ensure a level playing field vis-à-vis conventional finance.
  • Establish a comprehensive Shari’ah governance and compliance framework.
  • Develop a comprehensive liquidity management framework including the mechanisms and short -term liquidity management instruments to assist Islamic financial institutions with their liquidity management needs.
  • Establish an effective collaboration mechanism among all key stakeholders to ensure continued engagement on the multi-faceted issues faced by the industry.
Develop Human Capacity in the Financial Sector
  • Formulate a Financial Sector Capacity Development Plan.