The Maldives’ official reserves exceeded USD 1 billion at the end of January this year, with more than USD 300 million recorded as usable reserves, new figures released by the Maldives Monetary Authority (MMA) show.

Monthly reserve statistics published by the central bank indicate that official reserve assets stood at over USD 1 billion by the end of January. This is the first time in the country’s history that official reserve assets have crossed the USD 1 billion mark.

In addition to official reserve assets, the MMA holds foreign currency investments placed in domestic banks. These investments totalled USD 115.2 million at the end of January. As the funds are available for use by the central bank when required, they are included in total reserve calculations.

With these investments factored in, total reserves rose to more than USD 1.1 billion. Over the same period, the central bank’s short-term external liabilities stood at USD 839.9 million.

Usable reserves are derived by combining official reserve assets and foreign currency investments held in banks, and then deducting short-term external liabilities due from the central bank. On this basis, usable reserves at the end of January exceeded USD 301 million. This is the highest level of usable reserves recorded since the COVID-19 pandemic.

Both total reserves and usable foreign currency balances have risen to record levels following the implementation of the Foreign Currency Act in January last year, which introduced mechanisms requiring banks to channel foreign currency to the central bank.

Beyond official reserves, foreign currency holdings in the Sovereign Development Fund, established to meet external debt obligations, have also increased significantly over the past two years.