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SDF has 32 million in US Dollars, the rest in Maldivian Rufiyaa

Lamya Abdulla
23 June 2022, MVT 14:34
(FILE) Photo of Finance Ministry's building -- Photo: Mhaaru
Lamya Abdulla
23 June 2022, MVT 14:34

Mihaaru news reports that out of the MVR 4 billion in the Sovereign Development Fund (SDF), 32 million is in US Dollars.

SDF was established as the state fiscal reserve.

According to Mihaaru news the 90 percent of the fund, initially in US Dollars, in SDF was converted to Rufiyaa in 2020. Only 10 percent of the total fund remains in US Dollars now.

The money in SDF was converted to Maldivian Rufiyaa as per the suggestion of Maldives Monetary Authority (MMA). Mihaaru news had failed to get a comment from MMA regarding this issue, and the reason for the conversion remains unclear.

Established in 2017 to pay off the state debt, the SDF has MVR 4 billion. MVR 2 billion can be used immediately.

Generally, the money invested in SDF is income generated from Airport Development Fee, and Tourist Goods and Services Fee (TGST). The government has the authority to determine the amount to be paid as the “forced” savings to the fund. The amount to be deposited in SDF is allocated in the state budget each year.

The money in the fund are frequently invested as "fixed deposits", T-bills and bonds. Much of the fund has been invested in the bank's fissile deposits. The money was invested in T-bills as well.

The budget for 2022 stated that MVR 769 million will be deposited in SDF this year. The government’s aim is to deposit USD 600 million (MVR 9.2 billion) in SDF by 2026. President Ibrahim Mohamed Solih had reiterated that this goal will be achieved in a press conference held earlier this month.