New data released by the Maldives Monetary Authority (MMA), the country’s central bank, has revealed a downward trend in the official reserves and usable reserves of the Maldives in May this year.
Comparisons with the corresponding period last year and April of this year indicate a decrease in both categories. The official reserves, which amounted to US$807.95 million in May 2022, experienced a decline to US$748.15 million in May this year. Similarly, in April 2023, the figure stood at US$756.81 million.
The statistics further indicate that as of the end of May this year, the short-term debt reached US$600.48 million. Consequently, the usable reserves for May were recorded at US$147.67 million, representing a notable drop from the US$369.81 million reported in May last year. In April 2023, the usable reserves were slightly higher at US$151.34 million.
Usable reserves encompass the remaining funds after subtracting short-term debt from the official reserves. The decline in these reserves raises concerns about the financial stability and liquidity of the Maldives.
In response to the situation, the Finance Ministry has estimated that the official reserves are expected to reach US$606.3 million by the end of this year. The government is likely to implement strategies to boost reserves and stabilize the country’s economic position.