Maldives Monetary Authority (MMA) has stated the assistance from the Reserve Bank of India and the International Monetary Fund (IMF) will ease the burden on acquiring foreign currency for import of essential items to the Maldives.
MMA issued a statement noting the measures taken to mitigate the financial impact of COVID-19 on the Maldives. In this regard, the central bank noted the activation of a currency swap facility worth USD 400 million, signed with the Reserve Bank of India in July 2019. MMA noted USD 150 million has been made available from the currency swap facility, while IMF has provided an additional USD 28.9 million under the Rapid Credit Facility (RCF).
The central bank said the assistance from India and the IMF will ease the burden on acquiring foreign currency required to import essential items to the Maldives, such as food and medicine. MMA also stated the foreign currency injected to the exchange market has been increased, as part of the efforts to stabilise the exchange rate.
The gross international reserve of the Maldives at the end of March 2020 was USD 741.4 million. However, the reserve has increased to USD 882.6 million by April 27.
MMA stated it will be implementing the required actions and measures to mitigate the impact of COVID-19 on the local economy.