The Maldives Monetary Authority (MMA) has reported a substantial decrease in usable reserves, which fell to USD 67 million in June, down USD 4 million from the previous month. This decline follows a notable reduction from USD 148 million in May 2023 to USD 73 million in May this year, representing a 50 percent drop.
In April, reserves stood at USD 114 million, highlighting the volatility in the country’s financial situation. Total reserves were recorded at USD 509 million in June, down from USD 551 million at the beginning of the year. The most significant increase in total reserves this year occurred in February, when they peaked at USD 588 million.
Currently, usable reserves cover approximately one month’s worth of imports. The Ministry of Finance has indicated that the government is working on a currency swap facility to bolster reserve management.
At the end of last year, usable reserves were at USD 179 million. The sharp decline in reserves is attributed to the worsening financial condition of the country, prompting the government to implement measures aimed at reducing expenditure.
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