The total foreign currency reserves of the Maldives have reached 744.25 million dollars, with usable reserves reported at 46.25 million dollars. As of the end of November, official reserve assets were recorded at 616.17 million dollars, according to figures calculated by the Maldives Monetary Authority (MMA), which include holdings in foreign banks.
Furthermore, MMA data reveals an additional 128.08 million dollars categorized as “other foreign currency assets” outside the official reserve assets. This includes 2.39 million dollars listed as securities not part of the official reserves and 125.69 million dollars invested with Maldivian banks. Such investments represent funds that Maldivian banks can access if necessary. The MMA’s methodology involves aggregating both official and other reserve assets to determine total reserves.
When combining these figures, the total reserves amount to 744.25 million dollars, of which 46.25 million dollars qualify as usable reserves. Usable reserves are calculated by deducting “predetermined short-term net drains,” or foreign currency obligations due within the next year, from the total reserves, which currently stand at 698.53 million dollars.
The improvement in reserve levels can be attributed to a 400 million dollar currency swap agreement with the Reserve Bank of India, which has significantly bolstered the current reserve situation by providing dollars for foreign currency transactions through MMA support to local banks.
In addition to this dollar swap, a 30 billion rupee currency swap with India was also executed to facilitate bilateral trade in local currencies. While these measures and regulatory adjustments by the MMA have temporarily alleviated pressure on reserves—bolstered further by foreign exchange from tourism businesses—a long-term resolution for maintaining reserve stability is anticipated.
