Usable reserves at USD 114 million in April

Statistics released by the Maldives Monetary Authority reveal that usable reserves stood at USD 114 million by the end of April.

Statistics released by the central bank, Maldives Monetary Authority (MMA), show an increase of USD 4 million. However, this figure is USD 37 million lower compared to the same period in 2023. Usable reserves stood at USD 151 million in April last year.

Statistics show reserves in April are USD 65 million lower than in December last year. Usable reserves stood at USD 179 million in December 2023.

Usable reserves averaged USD 115 million during the first quarter of this year.

Official reserves stood at USD 622 million in April, which is USD 135 million less than in April 2023. Official reserves during the same period last year stood at USD 757 million.

Although official reserves are lower compared to the same period last year, they saw an increase of USD 71 million compared to January 2024.

The main reason for the increase in total reserves was the rise in predetermined short-term net drains, which mainly includes commercial bank deposits to MMA. Commercial banks' deposits increased by USD 67 million during the period. However, despite the increase in funds, these amounts cannot be used for government loans and imports since they belong to commercial banks. Hence, predetermined short-term drains cannot be used for the purpose of imports or government debt repayments in most cases.

Official reserves stood at USD 590 million at the end of last year.

A step to expand reserves is to save a certain amount from state income. Another step is to utilize currency swap facilities from time to time.