The Maldives Monetary Authority (MMA) has projected that the country’s foreign currency reserves will rise to USD 904 million by the end of next year, reflecting gradual improvement in reserve levels despite ongoing economic risks.
According to MMA estimates, reserves are expected to stand at USD 849 million by the end of this year, up from USD 674 million recorded at the end of 2024. The central bank attributed the strengthening reserve position primarily to higher dollar inflows from the tourism sector, increased foreign currency exchanges through banks, and the use of a currency swap facility.
MMA noted that the implementation of the Foreign Currency Act has also contributed to improved dollar inflows, with the Maldives Inland Revenue Authority (MIRA) recording higher revenue in foreign currency collections.
The authority said reserves are also expected to receive a temporary boost from refinancing arrangements being used to raise funds for the Sukuk repayment due in April next year, which will result in a short-term increase in dollar holdings.
While highlighting the improving reserve outlook, MMA cautioned that the Maldivian economy remains highly dependent on tourism, making it vulnerable to external economic developments. The central bank warned that changes in global economic activity and foreign policy decisions, including United States trade policy, could negatively impact investment flows to the Maldives.
MMA also flagged concerns over the country’s fiscal position, noting that continued weaknesses in public finances could pose further challenges in the period ahead.
On economic growth, MMA estimates that the Maldivian economy expanded by 5.4 percent in 2025, driven largely by gains in the tourism sector, as well as growth in transportation and communication services. Looking ahead, the authority forecasts economic growth of between 4.8 percent and 5.3 percent this year, indicating steady but moderated expansion.
