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Finance Minister assures no chance for reserve exhaustion

Mohamed Rehan
06 June 2022, MVT 12:11
Minister of Finance Mr. Ibrahim Ameer attending a meeting of the Economic Committee of Maldives Parliament--
Mohamed Rehan
06 June 2022, MVT 12:11

The Minister of Finance Mr. Ibrahim Ameer has denied the recent rumors of a possible reserve exhaustion.

While explaining the country's recovering economy, the minister via a tweet affirmed that with the expanding US Dollar income to the Maldives, the reserve will be maintained similar to pre-Covid levels.

Mr. Ameer claimed that the island nation is not shorthanded in repaying its debts.

He assured that the Maldivian state had the capability of settling all state debts on or before due.

Mr. Ameer had further scrutinized the rumors regarding the state's health and the country's economy. Moreover, he stressed on the negative impact such rumors will have on attracting prospective foreign investors.

According to the minister, such baseless rumors will without doubt pave way for the island nation's economic conditions being questioned by international stakeholders.

In addition to his assurance towards the country's reserve, Mr. Ameer further attested that both the Gross and Net Reserves of Maldives were at healthy levels; which is maintained through proper cash in-flow and out-flow of foreign currencies.

The minister assured that the Maldivian economy will be able to achieve pre-Covid conditions by the end of 2022, which he attributed to proper crisis management and effective conduct of local entrepreneurs.

Regardless, the minister had also warned that the international market changes and price inflation on products will be reflected in the Maldivian consumer market as well.

In order to combat the price hikes in the global market, especially the surge in oil prices leading towards fuel subsidy increment, the government has increased the ITFC trade finance limit to MVR175 million in a bid to offset the reserve impact.