Maldives reserves increase to six percent

Maldives’ official reserves rose to six percent at the end of last month.

Reserves stood at USD 976 million, according to figures released by the Maldives Monetary Authority (MMA).

This marks an increase of USD 49 million compared to USD 927 million recorded the previous month and is the growth in reserves since April, when reserves stood at USD 999 million.

The biggest decline in reserves this year was in January, when the figure dropped to MVR 858 million.

While official reserves increased, “other foreign currency assets” included in the total declined by 0.5 percent, now standing at USD 116 million.

Usable reserves also improved last month, rising to USD 194 million.

MMA noted that debt repayments remain the largest expenditure from reserves. In September, the government paid USD 50 million toward a Sukuk coupon rate.

As of July, a total of USD 213 million (MVR 3.3 billion) had been used for debt servicing, while STO spent USD 274 million (MVR 4.2 billion) to cover fuel and medicine imports.

To strengthen reserve levels, MMA is working to utilize a currency swap facility worth MVR 30 billion (USD 343 million) with the Reserve Bank of India (RBI).

The central bank has also amended the Foreign Exchange Act and increased dollar deposits in local banks to help stabilize reserves.