Usable dollar reserves are expected to increase by end of August, says MMA

Aug 22, 2024, 4:46 AM
MMA Governor Ahmed Munawar. -- Photo: MMA

MMA Governor Ahmed Munawar. -- Photo: MMA

The usable dollar reserves in the central bank are expected to increase by the end of August, the Maldives Monetary Authority (MMA) said on Wednesday, after Adhadhu reported that the reserves had been completely exhausted.

Following Adhadhu's reporting that this is the first time in the country's history that the reserves have fallen to minus, MMA issued a statement saying that the details of the reserve are publicized monthly.

"The Authority will continue to publish information about the reserve on a monthly basis. Maldives' usable reserves are expected to increase by the end of August compared to the end of July," the statement read.

The MMA had earlier warned the Finance Ministry that the usable dollar reserves may run out before the end of August.

According to the latest data released by the MMA, usable reserves fell to USD 43 million at the end of July. The central bank now expects the dollar reserve to be higher than that at the end of August.

The usable dollar reserve is the money kept by the government to pay off loans and spend on essential imports. The reserve consists of dollar revenue received by the Maldives Inland Revenue Authority (MIRA), grants received by the state and budget support.

The reserve is also used to send money needed to cover the expenses of students studying abroad and dollars sold to Maldivians travelling overseas. It is also used to issue dollars to banks and government companies.

The reasons for the fall in the reserves include having to pay back the loans and securities sold to finance expenditures that do not meet the revenue and increasing expenditure on oil and other imports.

The MMA predicted that this situation could arise when the budget was proposed for this year. The MMA told the Budget Committee that difficulties would come if the government did not raise the money needed to cover the budget deficit early in the year.

Comments

Read More

Latest News

Dhiraagu opens EliteClub+ loyalty program to all customers

Dhiraagu has expanded its EliteClub+ loyalty program to all mobile customers, offering tiered rewards and discounts at over 100 outlets. Users can earn points through bill payments and recharges to unlock benefits like free data and gift cards. New members receive a 100-point welcome bonus by signing up via the Dhiraagu App.

Maldives fisheries could plummet by 75 percent

A new study warns that climate change could reduce Maldivian fish stocks by 75% by 2100 as rising temperatures drive fish to cooler waters. Local fishermen already report traveling much further offshore to find catches. Experts caution against switching to industrial netting, as it could further deplete stocks and damage the nation's reputation.

Budget 2027: Domestic debt projected to surpass MVR 100 billion

The Maldives' domestic debt is projected to exceed MVR 100 billion by the end of this year, driven by heavy reliance on the domestic market for financing. Government estimates show debt rising to MVR 108.1 billion by late 2025. This year marks the highest borrowing period for the current administration to meet its fiscal needs.

Economic growth could be below one percent

The Maldives' economic growth forecast has been slashed to between 0.6% and 1.8% due to Middle East conflicts disrupting tourism. Finance Minister Hassan Zareer noted that travel route closures and rising fuel costs have caused a sharp decline in arrivals. The government now expects 2.17 million visitors, a 3.5% drop from last year.

Tourist arrivals expected to fall short of previous record

Maldives Finance Minister Hassan Zareer announced that tourist arrivals this year are expected to fall short of previous records and targets. The government revised its year-end estimate to 2.17 million visitors, citing geopolitical tensions as a factor. This decline marks the end of a five-year growth trend for the nation's tourism sector.

Maldivian flight with pilgrims abruptly postponed

A Maldivian flight carrying 250 Umrah pilgrims was postponed due to escalating regional tensions and airspace restrictions near Jeddah. Island Aviation delayed the trip to prioritize passenger safety amid deteriorating conditions in the Middle East. The airline and Hajj Corporation are working to assist affected travelers.

Villa College opens January 2027 intake with over 100 programs

Villa College has opened applications for its January 2027 intake, offering over 100 programs from certificates to master’s degrees. Students can apply until December 26, 2026, for courses in fields like IT, law, and nursing. The college provides international-standard education through partnerships with top UK and Malaysian universities.

Newsletter

Get the latest news delivered straight to your inbox