According to the latest statistics released by the Maldives Monetary Authority (MMA), the Maldives’ official reserves had risen to nearly one billion dollars by the end of 2025. This figure exceeds the amount financial institutions had previously projected for the end of that year.
MMA statistics indicate that official reserves, which stood at 673.89 million dollars at the end of 2024, rose to 983.04 million dollars by the end of 2025. This represents a significant 45 percent increase year-on-year. While this year’s third-quarter Economic Bulletin projected that reserves would stand at 849 million dollars by the end of 2025, the actual figure has far exceeded that expectation. Furthermore, the forecast that reserves would reach 900 million dollars by the end of 2026 has now already been surpassed.
In addition to official reserves, “Usable Reserves”—funds available for immediate government expenditure—have also witnessed an exceptionally positive shift. Usable reserves are calculated after deducting foreign currency debts payable within the upcoming year from official reserves and investments. Looking at the statistics, usable reserves, which were at a mere 63.36 million dollars at the end of 2024, increased to 244.12 million dollars by the end of last year. This is a 285 percent increase. Previously, official reserves had only reached such heights in 2020 due to a currency swap with the Reserve Bank of India and bonds sold by the government.
The main reasons for this substantial strengthening of reserves include the increase in tourist arrivals to the Maldives and the new Foreign Exchange Act implemented since January of last year. Under this law, a specific amount per tourist must be exchanged at banks; 60 percent of the dollars sold to the central bank from this process are utilized to strengthen reserves. Additionally, the MMA notes that the 400 million dollar currency swap facility signed with India’s central bank under the SAARC framework is a significant factor in the increase of reserves.
Despite the improved reserve situation, the current year, 2026, is the year the government faces its largest single debt repayment obligation. While 9.3 billion Rufiyaa has been allocated in this year’s budget for this purpose, with the improved reserves, the government is now preparing to repay the Sukuk. Furthermore, the government has given full assurance to the public that no debt will default and that all payments will be settled by their due dates.
