The Maldives’ official reserves have risen by six per cent, reaching USD 976 million at the end of last month, according to the Maldives Monetary Authority (MMA).
The latest figures show an increase of USD 49 million from the USD 927 million recorded in August, marking the first rise in reserves since April, when holdings stood at USD 999 million. The lowest point this year was observed in January, when reserves fell to USD 858 million.
While overall reserves strengthened, other foreign currency assets dipped slightly by 0.5 per cent, now standing at USD 116 million. Meanwhile, usable reserves improved to USD 194 million, reflecting a modest boost to the country’s foreign exchange position.
The MMA noted that debt repayments continue to represent the largest draw on reserves. In September, the government made a USD 50 million payment towards a Sukuk coupon rate. As of July, the state had spent USD 213 million (MVR 3.3 billion) on debt servicing, while State Trading Organisation (STO) outlaid USD 274 million (MVR 4.2 billion) on fuel and medicine imports.
To reinforce the nation’s reserve levels, the central bank is working to tap a currency swap facility worth MVR 30 billion (USD 343 million) with the Reserve Bank of India (RBI). In addition, recent amendments to the Foreign Exchange Act and an increase in dollar deposits at local banks are aimed at stabilising the reserves and strengthening the Maldivian rufiyaa.
