The usable reserve of the Maldives has dropped to USD 200 million according to Maldives Monetary Authority (MMA).
According to central bank’s latest statistics, the 2023 fiscal year began with a usable reserve of USD 260 million; indicating a USD 60 million decline from the last reviewed date.
Statistics showed that the country’s usable reserve stood at USD 400 million by the end of March 2022, which confirmed a 50% decline in the usable reserve in the same month this year.
The average usable reserve for 2022 stood at USD 290 million. The reserve saw a gradual decline from April until October, and in October it dropped to USD 105 million after which it observed gradual increment during the last quarter.
The usable reserve is calculated after deducting the short-term foreign liabilities from the Maldives national reserve, and indicates the state’s ability to settle foreign transactions on time.
MMA also claimed that the gross national reserve stood at USD 790 million at the beginning of this year, which has dropped to USD 760 million during the first quarter.
The main contributor to the reserve decline is settlement of loans and securities, for which the state has already spent USD 564 million.