Foreign reserves plunge to USD 717 million following major debt settlements

May 24, 2026, 4:46 PM
MMA.

MMA.

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.

Comments

Read More

Latest News

Former Deputy Mayor and two others appointed to SOE boards

The Privatisation and Corporatisation Board has appointed former Deputy Mayor Mohamed Areesh and two others to the boards of state-owned enterprises. Areesh joins Maldives Post Limited, while Ismail Farhad Ahmed and Ahmed Imdah Mohamed were appointed to the medical supply corporation and STO, respectively.

Dhiraagu Gaming Conquest to begin on November 26

The Dhiraagu Maldives Gaming Conquest 2026 will take place from November 26-28 at Kalaafaanu School, featuring a MVR 150,000 prize pool. The event includes tournaments for PUBG Mobile and Rocket League alongside VR and racing simulators. It serves as the nation’s premier platform for local gamers to compete and showcase their talents.

Lease acquisition cost slashed in atolls with few resorts

The Tourism Ministry has slashed resort lease acquisition costs by 25% in five atolls to attract investors. While base rates and land premiums have been significantly reduced for the next two years, interest remains low. Many development projects in these regions continue to face delays or remain stalled despite the new financial incentives.

Malaysian company to build ice plants on 11 islands

The Maldives Fisheries Ministry has partnered with Malaysian firm Altus Oil & Gas to build ice plants on 11 islands. Each site will feature a 30-tonne plant and 50-tonne storage unit to support local fishermen. This project marks a shift from the government’s previous goal of reducing reliance on land-based facilities.

MS Finance license revoked over regulatory violations

The Maldives Monetary Authority revoked MS Finance’s money-changing license and issued a fine for regulatory violations. The firm is allegedly linked to a major money laundering case involving the Football Association of Maldives. This action is part of a broader government crackdown on the country's illegal foreign exchange market.

MIB to convene Extraordinary General Meeting

Maldives Islamic Bank will hold an Extraordinary General Meeting next month. Shareholders registered by October 26 are eligible to participate and vote in person or by proxy. Full details regarding the agenda and timing will be published on the bank's official website.

BML slashes equity to five percent for some housing loans

Bank of Maldives has reduced the equity requirement for housing loans under MVR 3 million from 20% to just 5%. The bank also lowered interest rates to 9.5% and removed additional collateral requirements for these loans. This change aims to make homeownership more affordable by easing the burden of large down payments.

Newsletter

Get the latest news delivered straight to your inbox