Maldives' usable reserve has dropped to USD 148 million, central bank figures showed Wednesday.
According to data published by Maldives Monetary Authority (MMA), Maldives' reserve had decreased by USD 105 million by May, compared to the beginning of the year. The usable reserve was at USD 254 million in January.
In comparison to May last year, this is a decrease by 40 percent. The usable reserve stood at USD 370 million then.
The usable reserve is the remaining amount from the official reserve, after deductions for short term external liabilities. The usable reserve represents the funds available for immediate use for various foreign exchange transactions.
While the state's usable reserve has fallen to USD 148 million this year, it had fallen to USD100 million in August last year. That was the lowest the state reserve fell in the past two years.
In the last five months, the state's usable reserves and total reserves have gone down. At the end of May, the state's total reserves stood at USD748 million. Comparatively, at the beginning of the year, there was USD 790 million in the reserve.
The central bank has said such a significant decline is seen due to the increased debt repayment costs.
To increase reserves, Maldives has the option to withdraw up to USD 400 million from Reserve Bank of India under the currency swap facility. The facility is currently being used to improve reserves.
Over the past two years, the state's reserves remained consistent, undergoing major changes. As a result, the reserve numbers have fallen by 50 percent.
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