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Government reserves drop by 13 percent

Mariyam Malsa
20 November 2019, MVT 11:08
Aerial view of Maldives Monetary Authority (MMA). PHOTO/MIHAARU
Mariyam Malsa
20 November 2019, MVT 11:08

Maldives Monetary Authority (MMA) revealed that government reserves dropped by approximately 13 percent between April and September.

In April, government reserves were recorded at USD 778 million and currently stands at USD 530.8 million, which represents a fall of almost USD 250 million. A decrease of USD 80 million was experienced in both August and September.

In 2019, the greatest increase in government reserves was experienced in February with a peak amount of USD 938 million. In March, the sum fell by USD 170 million to USD 776 million.

Usable reserves also dropped during the month of September and currently stands at USD 204 million.

In an attempt to increase reserves, the incumbent administration signed an agreement for a USD 400 million currency swap with the Reserve Bank of India. Previous agreements for a currency swap of USD 200 million were also signed.

However, since the funds involved in such bilateral agreements must be settled, the currency swap agreements are only short term solutions.