Maldives Faces Depletion in Usable Reserves: Urgent Measures Needed

Maldives encounters a concerning downturn in usable reserves, reaching a mere USD 91 million by the close of October. This notable decline, the lowest in 2023, follows September's figure of USD 126 million, showcasing a 64 percent reduction. The Maldives Monetary Authority attributes this drop to extensive government spending on fuel, totaling USD 800 million in 2023. In contrast, the usable reserve peaked at USD 254 million in January. Simultaneously, the national reserve also hits a low point, resting at USD 552 million by October's end—USD 238 million below January 2023 levels. The World Bank underscores the urgency for austerity measures, budget cuts, and revenue expansion to address this unprecedented decline in the Maldives' national reserve.