MMA’s Official Reserve Rises 6 Percent, Marking Strongest Growth Since April

The Maldives Monetary Authority’s (MMA) official reserve rose by 6 percent at the end of last month, recording the highest month-on-month increase since April this year, according to the latest figures released by the central bank.

By the end of last month, MMA’s official reserve stood at USD 976 million, up from USD 927 million in the previous month—an increase of USD 49 million. The last comparable peak was recorded in April, when the reserve reached USD 999 million.

The reserve was at its lowest level in January, when it stood at USD 858 million, before showing steady improvement in subsequent months.

While the total reserve increased, “other foreign currency assets” included in the reserve decreased slightly by 0.5 percent, amounting to USD 116 million. The usable reserve also improved, currently standing at USD 194 million, indicating stronger short-term liquidity.

A major portion of MMA’s reserve continues to be allocated for debt repayment, which remains one of the country’s largest financial outflows. Last month alone, USD 50 million was paid toward the sukuk coupon rate.

By the end of July, the Maldives had spent USD 213 million (MVR 3.3 billion) on debt servicing. Additionally, USD 274 million (MVR 4.2 billion) was utilized by the State Trading Organization (STO) to fund essential imports, including fuel and medicine.

To strengthen the reserve position, MMA has been utilizing the USD 343 million (MVR 30 billion) currency swap facility established under an agreement with the Reserve Bank of India (RBI).

In addition, the central bank has amended foreign currency regulations to increase the inflow of U.S. dollars into local banks, as part of its ongoing efforts to improve foreign currency liquidity and ensure long-term reserve stability.

The latest rise in MMA’s official reserve signals a cautiously positive outlook for the Maldives’ external financial position, reflecting the impact of the central bank’s measures to safeguard reserve adequacy amid ongoing global and fiscal pressures.