The Maldives’ official foreign exchange reserves are projected to reach USD 817.17 million by the end of 2026, according to the Government’s Budget Book for next year, as authorities continue implementing measures aimed at strengthening the country’s external reserve position and supporting foreign exchange stability.
The projection represents a 16.9 per cent decline from the USD 984.6 million recorded at the end of last year, reflecting significant foreign currency outflows associated with external debt repayments and higher global prices of oil and other essential commodities. The Government’s reserve outlook also takes into account expected developments in international commodity prices, measures introduced to increase foreign currency earnings, monetary policy adjustments and anticipated foreign financing.
Official reserves showed strong growth during the early months of the year, rising above USD 1 billion in January and exceeding USD 1.3 billion by the end of March as the Government implemented measures to improve foreign exchange inflows and strengthen the reserve position.
Among the key measures introduced was an amendment to the Foreign Currency Act, requiring eligible businesses to deposit 40 per cent of their foreign currency earnings generated in the Maldives into local banks. A portion of the foreign currency deposited under this framework is sold to the Maldives Monetary Authority, contributing to efforts to strengthen national reserves and improve the availability of foreign currency within the domestic financial system.
The Government also utilised reserve resources to meet major external financial obligations during the year, including the USD 500 million sukuk repayment that became due in April. Of the total amount, USD 350 million was settled using funds accumulated in the Sovereign Development Fund, while the remaining amount was paid from official reserves.
Strengthening usable reserves also remains a key priority for the Maldives Monetary Authority. The MMA Governor has highlighted the importance of increasing usable reserves to support foreign exchange stability and enhance the country’s capacity to meet external financial requirements.
Latest MMA statistics show that official reserves stood at USD 547.7 million at the end of September, compared with USD 643.9 million at the end of August, representing a decline of 14.9 per cent. Usable reserves also decreased from USD 200.6 million in August to USD 167.7 million at the end of September, a reduction of 15.4 per cent.
Despite the impact of substantial debt servicing requirements during the year, the Government continues to pursue policies designed to improve foreign currency inflows, strengthen reserve buffers and reinforce the Maldives’ external financial position. The projected increase from September levels to USD 817.17 million by year-end reflects expectations of improved foreign currency inflows and continued implementation of measures aimed at supporting economic and financial stability.
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