The Maldives’ official reserve assets climbed to USD 810.05 million by the end of August, according to figures released by the Maldives Monetary Authority (MMA). The increase represents a 4.5 percent gain from July’s USD 774.5 million, reflecting government efforts to strengthen foreign currency holdings.
The rise in reserves was supported by USD 117.22 million in securities investments and other foreign assets outside the official tally, lifting the nation’s overall foreign currency position. Authorities credit stronger tourism earnings and the implementation of a new foreign exchange law — which requires 60 percent of dollars received by banks to be directed to reserves — as key drivers behind the improvement. The USD 400 million currency swap with the Reserve Bank of India under the SAARC framework has also provided an important buffer.
Despite the headline growth, concerns remain over the country’s short-term obligations. Data show immediate foreign exchange payables surged to USD 738.63 million in August, up sharply from USD 688.24 million in July. The increase in liabilities has weighed heavily on usable reserves, which dropped by 11.5 percent month-on-month. Usable reserves — calculated by subtracting short-term obligations from official reserves and other foreign assets — fell to USD 188.64 million in August, down from USD 213.22 million the previous month.
The government and the central bank have reiterated their commitment to stabilising reserves amid these pressures. While inflows from tourism and external arrangements have eased liquidity strains, the MMA faces significant challenges ahead, with over USD 1 billion in payments due next year.
