Although the central bank Maldives Monetary Authority's (MMA) total reserves increased as a result of a USD 400 million currency swap with India, usable reserves dropped to USD 31.5 million at the end of October.

Maldives' official reserves stood at USD 614.6 million in October, according to data released by MMA. The official reserves stood at USD 371.2 million at the end of September.

"The increase in reserves was mainly due to the USD 400 million in currency swaps from the Reserve Bank of India (RBI)," the MMA said in a statement.

Changes in usable reserves

• June: USD 66.9 million
• July: USD 43.6 million
• August: USD 61.2 million
• September: USD 48.8 million
• October: USD 31.5 million

Out of the USD 400 million received in the form of currency swaps, USD 120 million was invested in two banks in the Maldives.

Previously, currency swaps were invested in foreign banks with short-term repayment.

This time, however, the MMA said it invested in banks in the Maldives to maximize profits and facilitate financial growth and stability for the entire economy.

The usable reserves is currently not enough for the import of essential commodities for one month.