The Maldives Monetary Authority (MMA) has announced an increase in the nation’s usable reserves, which now stand at USD 61 million. This growth reflects the government's ongoing efforts to improve the state's financial standing.
According to MMA statistics, the official reserves saw a 36% increase in August compared to July. The reserves, which were USD 45 million in July, rose to USD 61.22 million by the end of August.
MMA also highlighted continuous growth in government reserves over the past seven months. At the end of July, total reserves amounted to USD 395 million, increasing to USD 444 million by August.
One significant step taken by the government to stabilize the financial situation has been the management of the Sovereign Development Fund (SDF). Previously reduced to USD 5 million due to custodian marking, the SDF now stands at USD 65 million and is maintained separately.
Usable reserves were reported at USD 105 million at the end of the first seven months of the year, with MMA projecting that the total usable and SDF reserves will exceed USD 606 million by year-end.
To further bolster the country’s financial position, MMA is collaborating with the government on issuing a refinance green bond. Additionally, the central bank completed the technical groundwork for a USD 400 million foreign currency swap arrangement with the Reserve Bank of India under the SAARC framework, with the agreement awaiting final signatures.
MMA expressed confidence that the government's medium-term fiscal and debt strategy, including spending cuts and revenue growth initiatives, will bring about positive financial improvements, with a notable recovery anticipated by November 2024.