Official statistics reveal a decline in the national reserves, with the usable reserve falling to USD 248 million.
According to data released by the Maldives Monetary Authority (MMA), gross international reserves stood at USD 686.8 million at the end of June. This represents a USD 18 million decrease compared to May.
In comparison to the USD 832.4 million recorded at the end of June last year, the reserves have seen an year-on-year decline of USD 145.6 million, or 17.5 percent.
The figures show that the usable reserve stood at USD 248.9 million at the end of June, marking a monthly decline of USD 11.9 million (4.5 percent). However, on an annual basis, the usable reserve has seen a 23 percent improvement compared to June of the previous year.
This decline follows a period in March when reserves stood at USD 1.3 billion. The reserves have depleted by USD 645 million within three months. The biggest drop occurred in April, following a USD 500 million sukuk repayment.
In a press statement, the MMA attributed the decline in gross reserves to an increase in foreign currency expenditures. The central bank noted that the volume of dollars sold to banks for telegraphic transfers (TTs) and overall spending on the banking system rose by 43 percent compared to May.
"The main reason for the decline in reserves is the increase in foreign currency expenditure. This includes a 43 percent increase in the amount of dollars sold to the market under the MMA's foreign exchange intervention policy, driven by high demand for foreign currency from the banking system and importers," the MMA stated.
The central bank further noted that the increased expenditure required to support TTs indicates a rising cost to maintain the value of the Maldivian Rufiyaa.
"This demonstrates that the expenditure required by the MMA to maintain the stability of the Maldivian Rufiyaa is increasing," the statement read.
