Usable reserves at USD 190 million in August

Usable reserves fell 7 percent to USD 190 million in August, according to figures released by Maldives Monetary Authority (MMA).

The decline was driven by a sharp rise in imports and debt repayments, with “short term net drains” reaching USD 736 million in August, up 7 percent from the previous month.

Compared to the same period last year, however, this represents a 90 percent decrease.

In July, usable reserves stood at USD 213 million.

While usable reserves declined, official reserves increased 4 percent, standing at USD 810 million in August, compared to USD 775 million in July.

The highest reserve recorded so far this year was in April (USD 856 million), while the lowest was in January (USD 708 million).

On average, official reserves have remained between USD 700–800 million in 2025.

MMA has previously highlighted the strain of debt repayments on reserves. As of July, 60 percent of reserve spending went toward debt servicing, with USD 213 million (MVR 3.3 billion) used for repayments. In the same period, STO spent USD 274 million (MVR 4.2 billion) on fuel and medicine imports.

The largest inflows into reserves continue to come from tourism taxes and fees.

To ease reserve pressures, MMA has tapped into its currency swap facility with the Reserve Bank of India (RBI), using USD 400 million so far and preparing to draw on an additional 30 billion Indian Rupees (USD 343 million).

The central bank has also amended the Foreign Exchange Act and increased the amount of dollars deposited with local banks. By July, banks had exchanged USD 247.2 million with MMA.