The most recent statistics from Maldives central bank reveals the international reserves and the usable reserves of the island nation had decreased in February 2020.
Maldives Monetary Authority (MMA) revealed in their latest statistical report the island nation’s usable reserve was recorded at USD277.7 million by the end of review month while in January, the usable reserves was at USD311 million.
The decline in the usable reserves for February for the current year is a 6.3% drop compared to the corresponding period in 2019.
Meanwhile the Gross International Reserve (GIR) of Maldives had decreased in February after marking an increase in the previous month of January. The GIR recorded USD776 million by the end of January however, it was recorded to decline to USD757.4 million in the review month.
The Maldives Gross International Reserve declined by 19.6% in the review month compared to the same period in 2019.
Maldives State Budget for 2020 forecast a total of USD818.8 million in the country’s national reserve by end of 2020.
However, the situation has changed due to the novel coronavirus (COVID-19) with a heavy blow on Maldives economy.
The travel and tourism industry, which makes up the most major economic component of Maldives, have come to a standstill while the country’s government announced a temporary cease for on-arrival visas, declared on 28 March.
Meanwhile all major international carriers taking flights to Maldives have announced temporary cessation on their operations while several other airlines have reduced in their flight numbers.
The country is currently observing a State of Public Health Emergency which was further extended till end of April, while government have taken several protective measures in efforts to flatten the curve on the spread of the contagion.
Minister of Finance, Ibrahim Ameer earlier forecasted a decline in arrival numbers between 37-50% in 2020 due to the pandemic. The country’s state budget is expected to hit a deficit of MVR12 billion – lowest in recent years.
Moreover, the country’s Gross Domestic Product declined by 3.5% according recent statistics and the economic growth is expected to drop into a negative 5.3%.