Maldives' usable reserves fall to $170 million at end of September

The Maldives' usable foreign exchange reserves fell to USD 170 million at the end of September 2026, following a decline of USD 31 million during the month, according to the latest economic statistics published by the Maldives Monetary Authority (MMA).

The figures show that gross official reserves stood at USD 547.8 million at the end of September.

Usable reserves, which reflect the foreign currency available after accounting for certain short-term foreign exchange obligations and other adjustments, were reported at USD 170 million.

The MMA's reserve calculations also take into account other foreign currency deposits held with the central bank.

The September figure represents the largest monthly decline in usable reserves recorded so far this year.

Compared with September 2025, usable reserves were lower by USD 60.4 million.

The decline was primarily attributed to the repayment of a USD 50 million obligation to the State Bank of India (SBI).

The Maldives settled the obligation in September, reducing the country's outstanding foreign currency liabilities but also affecting its available reserves.

According to Maldives Customs Service statistics, the country spends between USD 70 million and USD 165 million per month on essential imports, including fuel, medicines and food products.

Based on these figures, the USD 170 million in usable reserves at the end of September would be equivalent to approximately one to 2.4 months of essential imports.

However, the country's total monthly merchandise imports, including essential goods, are valued at between USD 304 million and USD 367 million.

At those levels, usable reserves would cover approximately two weeks of total imports.

The figures illustrate the difference between reserve coverage for essential commodities and the broader import requirements of the Maldivian economy.

International financial institutions, including the International Monetary Fund (IMF), commonly use three months of import coverage as a benchmark when assessing reserve adequacy, although appropriate reserve levels vary according to a country's economic circumstances.

Based on the Maldives' monthly import expenditure, maintaining reserves equivalent to three months of imports would require approximately USD 1 billion.

The USD 170 million in usable reserves reported at the end of September remains substantially below that level.

Editorial note: The Dhivehi source states that gross official reserves were USD 547.8 million and usable reserves were USD 170 million, but also refers to deducting USD 527 million in short-term obligations. Those figures do not reconcile arithmetically. The article therefore retains the reported reserve totals without repeating the inconsistent deduction.