Usable reserves drop below levels after settling sukuk

Sep 15, 2026, 7:09 PM
The Maldives Monetary Authority (MMA) headquarters --- Photo: Imthiyaz/Adhadhu

The Maldives Monetary Authority (MMA) headquarters --- Photo: Imthiyaz/Adhadhu

The latest statistics released by the Maldives Monetary Authority (MMA) reveal that usable reserves at the end of last month have fallen below the levels recorded in April, following the $525 million settlement of a sovereign sukuk.

According to the MMA’s most recent reserve data published today, the gross international reserves stood at $643.8 million at the end of last month. This represents an increase of $5 million compared to the previous month.

However, despite the rise in gross reserves, usable reserves—the portion of funds available for immediate domestic use—declined from $221.8 million to $200.6 million. This marks a decrease of $21 million, or approximately 10 percent.

The decline in usable reserves, even as gross reserves grew, is attributed to a $29.3 million increase in short-term foreign currency liabilities due within the next year. This figure rose by five percent over the past month.

Usable Reserves 2026

  • January - $301 million
  • February - $337 million
  • March - $409 million
  • April - $244 million
  • May - $260 million
  • June - $248 million
  • July - $221 million
  • August - $200 million

Analyzing this year's reserve trends, both gross and usable reserves reached record highs leading up to the sukuk repayment. However, following the settlement, gross reserves have stabilized around the $600 million mark, while usable reserves have dropped to the $200 million range.

At their peak in March, gross reserves stood at $1.3 billion, with usable reserves reaching $409 million.

Despite the depletion of reserves over the past two quarters, officials anticipate a recovery in the final quarter of the year (October to December). This optimistic outlook is supported by a 40 percent increase in foreign currency exchange through the banking system.

Comments

Read More

Latest News

CBM re-auctions Malé land plots following loan repayment defaults

The Commercial Bank of Maldives is re-auctioning two land plots in Malé after the owner defaulted on loan repayments. The properties, Maafannu Doragali 2 and 3, have a combined reserve price of MVR 3.8 million. Interested bidders must submit their offers by November 1 with a mandatory bid security of MVR 25,000.

Turkish firm ordered to pay MVR 25 million in unpaid taxes

The Maldives High Court ordered Turkish firm Turmaks to pay MVR 25 million in unpaid GST for materials used to build Tree Top Hospital. The court upheld MIRA's assessment, rejecting the company's claim that a verbal agreement shifted tax liability. The ruling emphasizes that the burden of proof for tax exemptions lies with the taxpayer.

Tax offset will be finalised when govt pays MIRA

The Maldives government has launched a mechanism allowing businesses to offset tax liabilities against debts owed to them by the state. The offset is only finalized once the relevant government agency transfers the funds directly to the tax authority. This move aims to address payment delays and support the private sector.

Addu Airport Company's losses climb to MVR 817 million

Addu International Airport Company’s total losses have reached MVR 817 million, resulting in a negative net worth. Despite a threefold increase in revenue from fuel sales, soaring operating costs and regulatory fines led to a MVR 68 million loss last year. The company remains operational through loans from the government and Kasa Holdings.

Customs struggles to recover unpaid duties and fines, audit finds

An audit reveals the Maldives Customs Service is struggling to recover MVR 461 million in unpaid duties and fines. Challenges include a weak legal framework, poor inter-agency information sharing, and lengthy delays in enforcing court judgments. Officials are now being urged to strengthen enforcement actions against defaulting parties.

One month free by paying FDC rent through DhiraaguPay

Dhiraagu Fintech is offering FDC flat tenants a chance to win a full month’s rent waiver by paying through DhiraaguPay. Two lucky winners will be selected via a lucky draw each month until the end of December. This promotion aims to encourage the use of digital platforms for secure and convenient financial transactions in the Maldives.

Muizzu announces tax offsets and duty exemptions for SMEs

President Muizzu announced tax relief for SMEs, allowing them to offset tax liabilities against outstanding government payments. The plan includes raising the GST registration threshold to MVR 1.5 million and exempting small businesses from import duties on specific goods starting in 2027 to ease financial burdens.

Newsletter

Get the latest news delivered straight to your inbox