Maldives’ Official Reserves Hit Historic High, Surpassing USD 1.13 Billion

For the first time in the nation’s history, the Maldives’ official state reserves have exceeded the USD 1 billion mark, reaching more than USD 1.13 billion in gross official reserves, President Dr. Mohamed Muizzu announced during his Presidential Address at the opening session of the People’s Majlis.

Highlighting the milestone as a significant boost to economic stability, President Muizzu said the record surge in reserves reflects the impact of fiscal and financial reforms introduced since his administration assumed office. He noted that the government prioritized strengthening dollar revenue streams and implementing sustainable strategies to manage the substantial debt inherited from the previous administration, while positioning the country to meet upcoming financial obligations.

According to the President, the growth in reserves is closely linked to improved foreign currency inflows and targeted policy changes. Foreign currency revenue reached USD 1.2 billion last year, while amendments to the Money Exchange Act enabled the Maldives Monetary Authority (MMA) to process USD 492 million—steps he described as crucial in reinforcing the country’s reserve position. He added that increased dollar deposits into the Sovereign Development Fund (SDF), established to service external debt, have contributed significantly to the overall improvement in official reserves.

President Muizzu revealed that when his administration took office, the SDF held only USD 2 million. The fund has since grown to USD 275 million, supported by measures including an increase in the Airport Development Fee and strengthened foreign currency deposit mechanisms. Of the current SDF balance, USD 150 million is earmarked to settle the Sukuk payment due in April this year, providing assurance regarding the country’s near-term debt servicing capacity.

The President further noted that state reserves stood at USD 983 million at the end of last January, marking the highest monthly reserve increase recorded during the previous year, before continuing their upward trajectory to the current historic level.

In addition to domestic fiscal measures, the government has pursued external financial arrangements to ease repayment pressures and stabilize the broader economic outlook. President Muizzu stated that the administration successfully negotiated a moratorium on certain loans from China, secured a rollover of the Indian currency swap facility that supports reserve buffers, and obtained a five-year extension on the repayment of a USD 100 million bond originally taken from the Abu Dhabi Fund for Development in 2018.

Describing the current reserve level as the highest ever recorded in Maldivian history, the President emphasized that the government will continue to pursue policies aimed at strengthening foreign exchange buffers, improving fiscal resilience, and ensuring long-term economic security for the country.