State reserves closed the year at USD 983 million

Statistics from the central bank, MMA, show that the state's official reserves stood at USD 983 million by the end of last year.

According to the data released by the institution, December was the month in which the reserves saw the most significant growth within the year. The final quarter of last year marked the three months during which the reserves rose most substantially.

In December, the usable reserve stood at USD 244 million.

The official reserves reached their lowest point last year in January, when they stood at USD 708 million.

Consequently, by the end of the year, the reserves had increased by USD 275 million. While the reserves in January remained above USD 900 million, the MMA estimates that the state reserves will stand at USD 904 million by the end of this year.

The significant improvement in reserves last year was attributed to an increase in dollar exchange from the tourism sector to the banks.

Additionally, to stabilize the reserves, the MMA utilized a currency swap facility from the Reserve Bank of India. Currently, the largest portions of the Maldives' reserves are spent on debt repayment and fuel imports.

This coming April will mark the single largest debt repayment in Maldivian history, as the state will pay USD 500 million in a lump sum as the full payment for a sukuk.