Maldives Monetary Authority (MMA) has increased the weekly allocation of US Dollars to commercial banks by 51 percent as part of efforts to improve foreign currency availability and ease pressure on the country's foreign exchange market.

The higher allocation took effect this week and will remain in place for three weeks.

The central bank said the measure is intended to improve access to foreign currency through formal banking channels, particularly for businesses that require dollars to finance imports.

The MMA has been introducing measures since February to address tightening conditions in the foreign exchange market, which the authority has linked primarily to weaker USD inflows amid a slowdown in tourism caused by continued instability in the Middle East.

The latest increase follows several earlier interventions aimed at supporting businesses and maintaining the availability of essential goods.

During Ramadan, the central bank raised weekly USD allocations to banks by 32 percent to help importers obtain foreign currency for essential food products and reduce potential pressure on domestic prices.

The weekly allocation was increased again by 26 percent in June, providing additional foreign currency support to businesses during the tourism industry's off-season.

The latest 51 percent increase represents the largest of the three recent adjustments and is aimed at providing additional liquidity to the formal foreign exchange market.

The MMA has been using increased USD allocations and other policy measures to manage foreign exchange pressures as businesses continue to face difficulties obtaining sufficient foreign currency for imports.

The central bank said the latest intervention is intended to ease those constraints by making more US dollars available through the banking system.