Net usable reserves drop to $222 million
The figures show that usable reserves declined by US$27 million over the course of one month, representing a decrease of around 10 per cent.
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The Maldives Monetary Authority (MMA) has proposed changes to the country's foreign exchange regulations that would require resorts to convert 20 per cent of their revenue into foreign currency for sale to the central bank.
The proposal would replace the existing option that allows resorts to exchange US$500 per tourist.
According to the MMA, the amendment is intended to address challenges in implementing current foreign exchange rules and increase foreign currency inflows into the country's reserves.
The central bank estimates that the proposed change could generate an additional US$100 million in foreign exchange.
The proposal comes as reserve levels continue to face pressure following the settlement of external debt obligations during the year.
According to MMA statistics, official gross reserves stood at US$638 million as of 26 June.
Net usable reserves, which exclude short-term foreign liabilities, stood at US$222 million.
The figures show that usable reserves declined by US$27 million over the course of one month, representing a decrease of around 10 per cent.
Over the past three months, usable reserves have fallen by US$39 million.
The latest figures also indicate that current usable reserves are insufficient to cover one month's worth of imports.
Based on current import requirements, the reserve balance provides coverage for between 0.52 and 0.62 months of imports, equivalent to approximately 15 to 19 days.
The Maldives currently requires between US$357 million and US$426 million each month to finance imports.
International benchmarks commonly recommend maintaining foreign exchange reserves sufficient to cover at least three months of imports.
The MMA has stated that the proposed change to resort foreign exchange conversion requirements would strengthen reserve inflows and improve the effectiveness of the country's foreign exchange framework.
The proposed amendment forms part of broader efforts by the central bank to increase the availability of foreign currency within the financial system and support reserve levels.
