Maldives Monetary Authority (MMA) has revealed that the government's usable reserves increased by USD114 million compared to October 2021.
As per the financial statistics report published by MMA, the government's official reserves stood at USD604.2 million at the end of November and USD499.6 million in October this year which is an increase of 21%.
Out of the revenue, the remaining is designated as usable reserves after deducting the debts owed by the state. The government's usable reserves stood at USD105.1 million in October and USD219 million in November this year which is an increase of USD114 million compared to October this year, according to the MMA report.
The government's usable reserves have increased following India's recent budget support of USD100 million to help the Maldives overcome the economic crisis. India provided the aid on November 29, 2022 which were provided through a treasury bond sale issued by the State Bank of India (SBI). India has given this aid to the Maldives without any conditions, as the government sees fit to prioritise spending to overcome the country’s current economic crisis. India has provided a sovereign guarantee to SBI for the loan.
There are various rumors circulating on social media that the country is running out of reserves, going into default and not being able to pay its debts. However, the Ministry of Finance has previously said that these stories are untrue and said that official reserves will be maintained at pre-COVID levels by the end of 2022, according to the ministry.