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Economic growth to increase foreign reserves: MMA

Maldives Monetary Authority (MMA) has stated that foreign exchange reserves of the nation will increase compared to 2023. This was revealed in the Quarterly Economic Bulletin released every three months.

The report publicised by MMA, indicated that by the year-end of 2023, the foreign exchange reserves had USD590.5 million. It also predicted that this amount is to increase significantly, such that the there is USD605.7 million by the end of this year.

According to the report, official foreign exchange reserves fell 29% in the first quarter of this year compared to the same period last year. By the end of the first quarter of this year, the reserves were at USD541.8 million. The report highlighted that the foreign exchange reserves decreased to complete the repayment of the USD100 million loan given by the State Bank of India, by the previous administration.

The report shed light on the remarkable progress of the tourism industry, indicating that it played a pivotal role in bolstering the nation's economic development. It also revealed that the progress of the tourism industry had benefitted many other sectors and industries interconnected with it, such as transportation and telecommunication.

While the amount in the foreign exchange reserves are projected to increase, the funds generated in the Sovereign Development Fund (SDF) has also increased within the past six months. Meanwhile, the nation has also been experiencing significant economic growth compared to 2023, following the implementation of various measures by the government.