President Dr Mohamed Muizzu has reported significant improvements in the Maldives’ financial position, announcing record levels of foreign currency exchange and gross national reserves that point to a stabilising economic outlook. Delivering his Presidential Address at the opening of Parliament, the president attributed the positive momentum to fiscal and monetary measures implemented by his administration, noting that these steps are beginning to reinforce confidence in the country’s financial management and medium-term prospects.
Central to this progress has been the performance of the Maldives Monetary Authority, which exchanged USD 492 million over the past year. The president described this as the highest volume ever recorded by the institution, emphasising its direct contribution to strengthening official reserves and improving liquidity conditions. As a result, the Maldives’ Gross Reserves have climbed to USD 1.13 billion, the highest level in the nation’s history, providing a stronger buffer against external shocks and supporting macroeconomic stability.
The address also highlighted advances in sovereign debt management, particularly through constructive engagement with international partners. President Muizzu confirmed that the government successfully renegotiated the terms of a USD 100 million bond issued in 2018 by the Abu Dhabi Fund for Development, securing an agreement to roll over the bond and extend its maturity by five years. He explained that this outcome was achieved through targeted consultations and diplomacy, easing near-term repayment pressures while preserving the Maldives’ standing with its creditors. In addition to projected revenues for the year, the agreement is expected to generate USD 100 million in non-tax revenue, scheduled for deposit within the next 45 days, further supporting fiscal operations.
Looking ahead, the president disclosed that negotiations are nearing completion to secure an additional USD 150 million in insurance coverage for creditors, a measure intended to enhance confidence and reinforce the country’s overall financial position. He acknowledged, however, that the administration continues to face substantial fiscal pressures inherited from previous years, most notably the repayment of a USD 500 million Sukuk issued in 2021 and maturing this year. That obligation, he noted, stemmed from earlier borrowing undertaken to service a USD 250 million bond issued in 2017, compounding the debt burden.
These cumulative liabilities had led the International Monetary Fund to classify the Maldives as being at high risk of debt distress in its 2022 assessments. Despite this, President Muizzu reaffirmed the government’s commitment to meeting its obligations while restoring fiscal resilience. A key pillar of this strategy is the strengthening of the Sovereign Development Fund, which the administration is prioritising to support long-term economic stability, safeguard essential development financing, and sustain confidence among global partners and investors.
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