The statistics from the Maldives Monetary Authority (MMA) has shown that the foreign currency reserves fell to USD 203 million at the end of last month.
According to the latest Statement of Financial Position report, total reserves stood at USD 832 million in June. This is an increase of USD 17 million compared to May.
Total reserves rose, but usable reserves declined as short-term debt increased to USD 774 million. This is USD 32 million more than the previous month.
The usable reserves are now calculated by making necessary deductions from the total reserves and adding the amount invested by the MMA in domestic banks.
The MMA invested part of the USD 800 million currency swap facility taken out from the Reserve Bank of India last year. As of last month, the investment in domestic banks stood at USD 145 million.
After a sharp rise in usable reserves in May, the reserves have fallen again amid a worsening dollar shortage crisis.
Currently, the black market rate of a dollar is MVR 20. This is a record high in the country's history.
Dollar shortage occurs during mid-year due to low tourism season. But experts say the shortage is more severe this year becaue a bigger portion of the dollar revenue is collected by the MMA under the Foreign Exchange Act.
As a result, many resorts have stopped paying salaries and service charges in dollars, leading to more difficulties in purchasing dollars even at the black market rate.
