No worry over reserve slump; can maintain at $690 mln: Ameer
The minister said that the country's total reserves stood at $658 million as of August.
By
Ahmed Naaif
Although the Maldives' foreign exchange reserves are falling at a much faster rate than expected, there is no worry over the reserve depletion and that it will be maintained at a good level by the end of the year, finance minister Ibrahim Ameer said on Thursday.
Speaking at a press conference held at the President's Office to brief reporters about the budget to be presented for the next fiscal year, Ameer said:
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Reserves are falling faster than expected
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The reason for this is the rise in fuel prices and the need for foreign exchange to import oil
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The rest of the world is facing the same problem
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Reserves likely to remain at $690 million by the end of the year
"This is happening to the rest of the world as the entire global economy is suffering at the moment. That's what's happening in the Maldives too, but we will be able to retain as much reserve as expected," Ameer said.
The minister said that the country's total reserves stood at $658 million as of August. However, after short-term debt obligations, only $244 million remain as usable reserve which is just enough to import essentials for 1.1 months.
Ameer said the Maldives has found ways to correct the slump in reserves. Stating that there is no concern if the reserves are depleted for the time being, the minister said:
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Maldives has a $400-million currency swap facility
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$200 million is available under a SAARC facility
"We are yet to take advantage of these facilities which can be used to cushion the impact on the reserves. We can also utilise these resources," the minister said.
The minister also expressed confidence that the Maldives would be able to raise more foreign currency in collaboration with various foreign financial institutions. That way the difficulty in getting foreign exchange will be eased, Ameer said.
