Usable reserves in the Maldives dropped to USD 67 million in June, down USD 4 million from the previous month, according to the Maldives Monetary Authority (MMA). In April, reserves were at USD 114 million, rising to USD 148 million in May 2023 before falling to USD 73 million by May this year, a 50% decrease.
Total reserves also declined to USD 509 million in June, from USD 551 million at the start of the year, peaking at USD 588 million in February.
Currently, usable reserves cover about one month of imports, prompting the Ministry of Finance to pursue a currency swap facility to strengthen reserve management. At the end of last year, usable reserves were USD 179 million. The sharp decline is due to worsening financial conditions, leading the government to implement austerity measures.
These figures highlight the need for effective strategies to stabilize reserves and ensure economic resilience.
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