The Maldives Monetary Authority (MMA) has projected that the country’s official reserves will reach USD 904 million by the end of this year, reflecting the impact of fiscal and monetary measures being implemented by the Government and the central bank to strengthen the Maldives’ financial position.

According to the MMA, official reserves are expected to stand at USD 849 million by the end of 2025, marking a notable increase from USD 674 million recorded at the end of 2024. The central bank attributed the improvement largely to higher foreign currency inflows from the tourism sector, increased dollar deposits, and the utilisation of a currency swap facility.

The MMA said the growth in dollar-denominated revenue has played a key role in bolstering reserves. In addition, the decision to refinance the sovereign sukuk maturing in April this year is expected to provide a short-term boost to foreign currency inflows.

MMA estimates that economic growth reached 5.4 per cent last year, driven mainly by the expansion of tourism, as well as growth in transportation and communication services.

However, the central bank cautioned that the Maldivian economy remains highly dependent on tourism and is therefore vulnerable to external shocks. The MMA noted potential risks arising from global economic developments, including changes in foreign trade policies, which could affect investment flows. It also warned that further financial pressures could emerge if fiscal consolidation efforts do not progress as planned.

International credit rating agency Moody’s Ratings recently affirmed the Government’s long-term local and foreign currency issuer ratings at Caa2, while revising the outlook to stable from negative, citing recent fiscal reforms and improved financing conditions.