The state's usable reserves stood at USD 140 million by the end of last year, statistics from the Maldives Monetary Authority (MMA) have shown.
The usable reserve is the amount left after deducting short-term foreign liabilities from the official reserve. It shows the funds readily available for various foreign currency transactions.
The usable reserve stood at USD 254 in January last year, according to the MMA's statistics. The usable reserve fell monthly to a low of USD 126 million in November before increasing slightly by the end of the year.
According to the latest figures published by the MMA, the official reserve fell from USD 790 million at the start of last year to USD 588.1 million on December 31, 2023.
The usable reserve was USD 140 million (MVR 2.1 billion) at the end of the year when short-term liabilities were deducted.
The figure was notably 44 percent down from the usable reserves at the start of the year.
The main reason for the decline in the reserve was the state's increasing expenditure on importing staple foodstuff, medicine and petroleum products. The MMA usually sells dollars from the usable reserve to banks and for the State Trading Organization (STO) to import staples, medicine and oil. The central bank also sells dollars needed for foreign transactions by other state-owned enterprises.
