Maldives Sees Sharp Rise in Usable Dollar Reserves

The Maldives’ usable foreign currency reserves saw a significant boost in May, rising by 27 percent to USD 217.88 million, according to the Maldives Monetary Authority (MMA). In April, the figure stood at USD 171.3 million, showing an increase of USD 46.58 million within a month—marking a clear improvement in short-term liquidity.

However, while usable reserves increased, overall official reserves dropped by 5 percent, falling from USD 865.34 million in April to USD 815.82 million in May.
To tackle ongoing pressure on reserve levels, the government has stepped up its efforts. New rules now require a higher share of tourism revenue to be converted through local banks. Initially, 60 percent of the funds had to be sold to the MMA, but as of June 1, that figure has increased to 90 percent, aiming to strengthen the country’s foreign currency position.

These changes come as Fitch Ratings reaffirmed the Maldives’ credit rating at CC, unchanged from its previous assessment. Analysts continue to cite foreign currency reserve levels as a key factor in evaluating the nation’s economic outlook.