Official reserves fall to USD 638 million in July after debt repayments

Maldives’ official reserves have continued to decline over the past three months, falling to USD 638.03 million at the end of July, a sharp drop compared to March this year.

According to the latest data released by the Maldives Monetary Authority (MMA), official reserves stood at USD 1.33 billion in March. Since then, reserves have decreased steadily month-on-month.

MMA figures show reserves at:

• April: USD 717.90 million  

• May: USD 704.77 million  

• June: USD 686.83 million  

• July: USD 638.03 million

The primary reason for the steep decline after March is the government’s repayment of large external debts in April.

A total of USD 524.68 million in securities issued by the previous administration was settled in full that month. The repayment was made using the Sovereign Development Fund (SDF) and the state’s official reserves.

In addition, the USD 400 million currency swap facility extended by India was also repaid in April.

The simultaneous settlement of these major external obligations is one of the key factors behind the significant drop in official reserves so far this year.

As reserves continue to fall, the Maldives is experiencing a shortage of dollars. Banks have struggled to supply dollars at official rates, while the dollar has remained above MVR 20 on the black market.