Reserves fall 46 percent as government pays debts

Government reserves fell sharply at the end of April, dropping by 46 percent as the state continued to settle large external debts.

According to Maldives Monetary Authority (MMA) data, official reserves stood at USD 718 million at the end of April, down from USD 1.3 billion the previous month, marking a 46 percent decline.

Usable reserves also fell significantly, dropping 40 percent to USD 244 million, compared to USD 400 million in March. Usable reserves had exceeded USD 1 billion during the first three months of the year. In April last year, usable reserves stood at USD 856 million, reflecting a 16 percent year‑on‑year decrease.

The government has paid off nearly USD 1 billion in debt so far this year. More than MVR 10 billion from this year’s budget has already been spent on loan repayments and interest. The MMA has also settled the USD 400 million currency‑swap facility under its agreement with the Reserve Bank of India (RBI).

Former President Abdulla Yameen Abdul Gayoom recently criticised the MMA, alleging that its usable reserves had fallen to “two digits” and questioning the government’s debt‑repayment strategy. He also claimed that no foreign lender was currently willing to extend loans to the Maldives.