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MALE’: The Maldives’ usable foreign currency reserves fell to $170 million by the end of September, according to the latest economic statistics released by the Maldives Monetary Authority (MMA).

Official figures show that the country’s gross official reserves stood at $547.8 million at the end of September. However, after accounting for $527 million in short term external debt repayments and other foreign currency liabilities, usable reserves amounted to just $170 million.

This marks the lowest level of usable reserves recorded so far this year.

Reserves decline following debt repayment

The usable reserves fell by $31 million compared to August and were $60.4 million lower than the corresponding period last year.

The decline was mainly attributed to the repayment of a $50 million bond issued by the State Bank of India (SBI), which was settled by the Maldives.

Reserves cover barely a month of essential imports

According to Customs figures, the Maldives spends between $70 million and $165 million each month importing essential goods, including fuel, medicines and food.

At the current level, usable reserves of $170 million would cover approximately one to 2.4 months of essential imports.

However, the country’s total monthly import bill ranges between $304 million and $367 million. This means the available usable reserves would cover only around two weeks of total imports.

Below international reserve benchmarks

International financial institutions generally recommend that countries maintain foreign currency reserves sufficient to cover at least three months of imports.

For the Maldives, meeting this benchmark would require reserves of approximately $1 billion, significantly higher than the current usable reserve level.

The latest figures highlight the pressure on the country’s foreign currency position and its capacity to meet import requirements and external payment obligations.