President Dr. Mohamed Muizzu has stated that the National Reserve has risen to its highest peak for the first time in Maldives' history, currently at USD 1.1 billion.
During the opening of the Parliament's new session, President Muizzu gave the Presidential Address, where he stated that important work has been done by prioritizing the improvement of the fiscal state of Maldives. He said that policy changes were brought about by being mindful in increasing USD revenue so that the debt that has been inherited by the previous government can be paid off.
As per the President, due to the government's financial policies, it will be much easier to pay off outstanding debts.
The National Reserve had USD 983 million at the end of January. This is the highest gain seen within a month in the past year.
The President went on to say that last year's USD revenue saw USD 1.2 billion. He continued on, saying that the amendments to the Foreign Currency Act saw the Maldives Monetary Authority (MMA) exchange USD 492 million and that it was an important step in improving the National Reserve.
"With the positive changes to the revenue, we have received USD 1.2 billion in foreign currency. As a result, the USD deposits to the SDF Fund in order to pay outstanding debts has also increased, with the National Reserve seeing beneficial changes as well," said the President.
When the current administration took office, the SDF Fund only had USD 2 million at the time.
However, as per President Muizzu, the SDF Fund, which serves to pay off debt, currently has USD 275 million. This change was brought about after the airport development fee was hiked up, with the USD deposits to the fund being increased as well. USD 150 million will be used for the Sukuk payment in April.
"Maldives currently has USD 1.13 billion in the National Reserve. This is the highest the reserve has gone up to in the history of Maldives," said the President.
President Muizzu continued by stating that they have been able to postpone loan payments to China in order to further ease debt payments and improve the nation's fiscal situation. The President also stated that they were able to rollover the Indian Rupees swap facility, which allowed them to increase the reserve as well.
Last year, the government was also able to increase the payment window of the USD 100 million bond taken in 2018 from the Abu Dhabi Fund for Development by five years.
