The latest statistics from the Maldives Monetary Authority (MMA) reveal that gross reserves, which stood above USD 1 billion during the first quarter of this year, have dropped to USD 717 million following sukuk payments and the settlement of a dollar currency swap with India.
Last month, the Maldivian government settled a total of USD 924 million in debt, including USD 524 million for a sukuk and USD 400 million to the Reserve Bank of India (RBI) under a currency swap arrangement facilitated by the Indian government.
Following these debt settlements, gross reserves saw a decline of USD 613 million. At the end of the first quarter of this year, gross reserves stood at USD 1.33 billion.
The decline in gross reserves was accompanied by a drop in usable reserves. By the end of last month, usable reserves stood at USD 244 million, representing a decrease of USD 167 million compared to the previous month.
Usable Reserves 2026
- January - $301 million
- February - $337 million
- March - $411 million
- April - $244 million
The main reason reserves remained at a stable level despite the significant debt repayments was the arrangement of a 30-billion-rupee facility from India following the settlement of the dollar currency swap.
Information suggests that the MMA has deposited these funds in a foreign bank to obtain dollars in exchange. However, the Authority has not officially confirmed this.
The most significant current challenge to the Maldives' foreign exchange situation is the decline in tourist arrivals linked to the conflict involving Iran. This has already begun to impact state revenue.
Statistics released by the Maldives Inland Revenue Authority (MIRA) show that state revenue for last month was lower than in April of the previous year.
But the agency reported that USD 660 million in dollar revenue was collected during the first four months of this year. This is an increase of USD 91 million compared to the same period last year.
