News Desk
MALE’ — The Maldives’ official foreign reserves stood at $686.8 million at the end of June, even as the government continues to manage significant debt repayments.
According to data released by the Maldives Monetary Authority (MMA), the figure represents an $18.0 million decline compared to May. When measured against June of last year, the official reserves—or gross reserves—have contracted by $145.6 million, a decrease of 17.5 per cent.
Despite the dip in gross reserves, the “usable reserve”—the portion of funds readily available for essential government spending and market intervention—stood at $248.9 million at the close of June. While this is an $11.9 million decrease from May, it represents a notable 23 per cent improvement compared to the $203 million recorded in June 2025.
The central bank attributed the monthly decline in gross reserves largely to intensified government spending in foreign currency. Specifically, the MMA cited a 43 per cent surge in the amount of dollars injected into the banking system to meet the high demand from importers and commercial banks. This intervention is a central plank of the regulator’s foreign exchange policy, aimed at maintaining liquidity for essential goods.
The latest figures highlight the fiscal pressures currently facing the archipelago. Following a peak of $1,331.8 million in March 2026, the country’s gross reserves have seen a cumulative decline of $645.0 million. Data indicates that the most significant portion of this drawdown occurred in April, as the government navigated substantial debt obligations.
As the state works to balance debt servicing with the foreign exchange requirements of a tourism-dependent economy, the MMA’s figures offer a snapshot of the ongoing volatility in the nation’s balance sheet.
