By the end of September, the Maldives' usable reserve had dropped to USD 49 million, according to statistics released by the Maldives Monetary Authority (MMA). The total reserve, however, stood at USD 371 million during the same period.
The decline in the usable reserve is attributed to rising fuel costs and debt payments. According to MMA records, USD 322 million was spent on these expenses last month alone.
For the past five months, the country's usable reserve has fluctuated between USD 90 million and USD 45 million, signalling ongoing pressure on the nation’s financial stability.
Earlier this month, President Dr. Mohamed Muizzu secured a USD 750 million currency swap facility during his State visit to India. This includes a USD 400 million swap facility and an INR 30 billion arrangement to help bolster reserves. MMA announced last week that discussions with India's Reserve Bank of India (RBI) are underway to expedite this facility.
The lowest usable reserve in recent memory occurred in July, when it dropped to USD 45 million.
Average Usable Reserve:
- 2022: USD 293 million
- 2023: USD 161 million
- 2024 (First 7 months): USD 93 million
The declining reserve is primarily due to the high foreign debt repayment costs and increased USD spending on fuel imports.
