Maldives Usable Reserves See Significant Growth in February

The Maldives' usable reserves have shown significant improvement, reaching USD 179 million by the end of February, an increase of USD 63 million from January's figure of USD 116 million. This marks the highest reserve level seen since last February when reserves stood at USD 128 million. However, the country faced a sharp decline in reserves in September 2024, with numbers dropping to as low as USD 32 million.

The increase in reserves comes after the Reserve Bank of India (RBI) provided a USD 400 million currency swap. As part of the agreement, USD 120 million was injected directly into Maldivian banks, marking the first time these funds were used in this way, as they were previously held abroad.

While usable reserves have risen, total reserves for the year stood at USD 832 million. The government is now considering other measures to further improve financial stability. Discussions are underway with the Ministry of Finance to generate revenue through the Housing Development Corporation (HDC) by selling land plots, potentially raising between MVR 8 billion to MVR 20 billion.