News Desk
The Maldives is facing acute foreign exchange pressure today as a USD 50 million debt repayment owed to India falls due, prompting warnings from former President Mohamed Nasheed over potential shortages of essential imports.
Nasheed’s warning on social media platform X coincided directly with President Dr. Mohamed Muizzu holding high-level talks at the President’s Office with a delegation from the Communist Party of China (CPC), led by Peng Xiubin, Director General of the Bureau for Southeast and South Asian Affairs under the CPC Central Committee’s International Department (IDCPC).
“The Maldivian government is required to repay a USD 50 million bond owed to the Indian government by the end of today. The Maldives central bank’s usable reserves are expected to fall sharply from tomorrow. The government will not have enough foreign currency to pay for staples, fuel, and medical supplies,” Nasheed posted.
While New Delhi has traditionally acted as a flexible financial backstop for Malé during past reserve crunches, India demanding full payment on the deadline highlights the growing strain in bilateral relations under President Dr. Mohamed Muizzu’s administration.
Fresh data from the Maldives Monetary Authority (MMA) shows usable reserves dropped 9.6 percent in August, falling to USD 200.6 million from USD 221.9 million in July. The central bank noted that it sold 13.8 percent more dollars to commercial banks in August than in July to ease local market demand, while foreign currency revenues collected by the Maldives Inland Revenue Authority (MIRA) plunged 14.3 percent over the same period.
While financial pressure mounts, President Muizzu stressed his administration’s national priorities during a meeting of the People’s National Congress (PNC) high council. Speaking at the session, the President declared that his government holds a singular “national agenda” focused on prioritizing “Maldives First.”
At the same time, Malé is widening its direct engagements with Beijing. Following the President’s meeting with Peng Xiubin, local think tank PolicyMV officially launched the Maldives-China Governance Research Program in collaboration with the IDCPC.
PolicyMV is registered as a partnership whose partners include former Minister Hamdhoon Abdulla Hameed, former President Mohamed Waheed Hassan, Aneesa Ahmed, Zahiya Zareer, Ambassador Ahmed Sareer, academic Ali Fawaz Shareef, and Aishath Azima Shakoor, who served as Minister for Legal Affairs under former President Abdulla Yameen. Azima was appointed by President Muizzu on August 23, 2026, as Principal Secretary to the President on National Territory and Sovereignty at the Cabinet level.
During the launch ceremony, Chinese Ambassador to the Maldives Kong Xianhua affirmed Beijing’s commitment to supporting state development initiatives and expanding policy research efforts across the country.
