Usable reserves hike to MVR 151m
Reserves have been declining since May this year and this is the first time the reserve has gone up since then.
By
Ahmed Naif
The immediately available reserves, or usable reserves, grew by USD 26 million in the first eight months of this year, according to data from the central bank, Maldives Monetary Auhority (MMA).
Official reserves and usable reserves increased at the end of August compared to July, according to economic data released by the MMA on Thursday.
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Official reserves stood at USD 594.1 million in July
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However, in August, reserves increased by USD 100 million to USD 694.2 million
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Usable reserves stood at USD 125 million in July
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However, in August, the reserves increased by USD 26 million to USD 151 million
According to customs statistics, Maldives needs an average of USD 66 million a month to import basic goods such as oil, food staples and medicines.
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The reserves currently available will be sufficient for 2.3 months
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In July, the reserves were barely enough for 1.9 months
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Economists say it is important to keep enough in reserves to import at least three months of basic goods
Official reserves stood at USD 790 million at the beginning of the year. However, reserves have been declining since May. This is the first time the reserve has gone up since then.
One of the measures of the health of a country's economy is the amount of foreign exchange reserves or official reserves. It is also important to maintain the right amount of immediately available money, or usable reserves as Maldives is dependent on imports and needs foreign currency to import basic amenities.
