MMA Data Shows Strong Recovery in Usable Reserves to USD 300 Million

Maldives’ usable foreign currency reserves have recovered to pre pandemic levels, reaching USD 300 million, according to the latest statistics released by the Maldives Monetary Authority (MMA).

Figures published by the central bank indicate that the current usable reserve level closely mirrors the country’s economic peak prior to the COVID 19 crisis. Historical data shows that the highest usable reserve level was previously recorded in 2019 at USD 315 million, underscoring the scale of the recent improvement.

Reserve trends over the past five years reflect the impact of global disruptions and domestic policy adjustments. Usable reserves dropped sharply to USD 129 million in 2020 as tourism activity declined during the pandemic. The figure rebounded to USD 285 million in 2021 before moderating to USD 254 million in 2022 and falling further to USD 179 million in 2023. The situation deteriorated significantly in 2024, when reserves fell to between USD 45 million and USD 65 million, before rebounding strongly this year to USD 300 million.

Typically, the Maldives maintains usable reserves sufficient to cover approximately one month of imports. This level is considered an important indicator of short term external stability, reflecting the country’s capacity to meet immediate foreign payment obligations and finance essential goods.

The recent recovery follows policy measures introduced to strengthen foreign currency inflows, including requirements for the tourism industry to exchange foreign currency through the local banking system. These steps are aimed at improving dollar liquidity and easing pressure on the country’s external position.

MMA data also shows that Gross International Reserves have surpassed USD 1 billion, rising from USD 983 million recorded at the end of last year. While gross reserves represent the total foreign assets held by the central bank, usable reserves are calculated after deducting short term foreign liabilities, providing a clearer picture of funds readily available for imports and other urgent requirements.

The rebound in usable reserves signals a strengthening of the Maldives’ external buffers and reflects improved foreign currency flows, particularly from tourism, which remains the primary source of dollar earnings for the country.