The Ministry of Finance has indicated that the government is working on a currency swap facility to strengthen reserve management.
Usable reserves decreased to USD 67 million in June this year, a drop of USD 4 million from the previous month.
According to the Maldives Monetary Authority (MMA) economic update, reserves stood at USD 114 million in April. Usable reserves stood at USD 148 million in May 2023 which fell to USD 73 million in May this year, marking a 50 percent decline.
Total reserves were USD 509 million in June, down from USD 551 million at the beginning of the year. The largest increase in total reserves this year was in February, with a total of USD 588 million.
Currently, usable reserves cover about one month's worth of imports. The Ministry of Finance has indicated that the government is working on a currency swap facility to strengthen reserve management.
At the end of last year, usable reserves were at USD 179 million. Reserves fell significantly due to the deteriorating financial situation of the country, prompting the government to take measures to cut expenditure.
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