The value of the USD 500 million sukuk sold by the Maldives has fallen to an all-time low due to global economic uncertainties.
On April 7, sukuk was trading at 46 cents per dollar. Its value has been rising since then, but remains below the normal rates.
This is likely due to uncertainties in the global economy after US President Donald Trump's list of 60 countries with higher tariffs.
Source: Frankfurt Stock Exchange
The US has postponed tariffs on countries other than China for 90 days. China has also announced retaliatory tariffs on US goods.
After Fitch downgraded the Maldives' credit rating last year, sukuk fell to 66 cents per dollar.
Fitch downgraded the credit rating due to the risk of debt default because of low foreign exchange reserves and looming repayment deadlines.
A large portion of the Maldives' debt is owed to China and India.
