Total reserve increases to USD 444 million, usable reserve at USD 61 million

Maldives has reported an 11 percent increase its total reserve by the end of August 2024.

Central bank Maldives Monetary Authority (MMA)'s data published today shows that the total reserve improved from USD 395 million to USD 444 million.

With this, the usable reserve has also increased by 26 percent, and now stands at USD 61 million. This is USD 16 million more than last month, which was the lowest recorded usable reserve in the past three years.

Last Friday, Finance Minister Dr. Mohamed Shafeeq attributed the improved reserves to the spike in dollar revenue for the country.

Despite this improvement, the usable reserve is still only sufficient for a month's worth of imports.

While the total reserve was at USD 551 million at the beginning of this year, the highest increase which has been recorded this year was in February. In February, the reserve was at USD 588 million.

Average Usable Reserve

- 2022: USD 293 million

- 2023: USD 161 million

- 2024 (seven months): USD 93 million

At the beginning of this year, usable reserves were at USD 110 million, while it was at USD 179 million at the end of last year.

Given the current financial situation of the country MMA is now working on a USD 400 million currency swap facility through the Reserve Bank of India (RBI).