State reserves drop seven percent in July

Maldives’ official reserves fell by 7 percent in July, standing at USD 775 million, down from USD 832 million the previous month, according to Maldives Monetary Authority (MMA).

This marks a USD 57 million decline, with reserves averaging between USD 700 and USD 800 million over the past seven months.

Usable reserves, however, rose slightly to USD 213 million in July, compared to USD 203 million in June.

MMA said the government spent USD 213 million (MVR 3.3 billion) from reserves for debt repayments by July, a 60 percent increase compared to the same period last year. Total spending from reserves reached USD 274 million (MVR 4.2 billion).

Tourism taxes and fees remain the largest source of foreign exchange earnings, which MMA noted were 30 percent higher in the first seven months of this year compared to 2024.

Reserves, which had fallen to USD 371 million in September 2024, began recovering afterwards due to stronger tax revenues, tighter foreign exchange regulations, and currency swaps.