The Maldives Monetary Authority (MMA) has announced a marked improvement in the country’s external financial position, with official reserve assets surpassing USD 1 billion for the first time in recent years and usable reserves posting a strong recovery at the start of 2026.
According to the latest central bank data, total official reserves stood at USD 1.03 billion at the end of January 2026, reflecting a 4 percent increase from USD 983.04 million recorded in December 2025. This is the highest level of official reserves since 2020, when reserves were temporarily supported by a USD 400 million currency swap arrangement with the Reserve Bank of India and the issuance of a USD 250 million sovereign bond.
More significantly, usable reserves—a key gauge of immediate foreign exchange liquidity—rose sharply to USD 301.4 million in January, up 25 percent from USD 244.1 million a month earlier. This improvement comes despite substantial short- and medium-term foreign exchange obligations, which currently stand at USD 839.8 million. The latest figure signals the strongest position for usable reserves following a period of pressure over the past two years.
Economic analysts attribute the rebound to two main factors. The first is the continued strength of the tourism sector, the Maldives’ primary source of foreign exchange earnings. The second is the stricter enforcement of the Foreign Exchange Act, which came into effect in January 2025 and requires tourist establishments to convert a portion of their foreign currency revenues through local banks.
In parallel with the reserve gains, the MMA has also taken steps to maintain market stability. From 17 February, commercial banks were instructed to increase dollar allocations to importers by 32 percent above normal levels for a three-week period. The move is aimed at supporting the import of essential goods and meeting higher seasonal demand ahead of Ramadan, while preventing supply disruptions in the domestic market.
Together, the rise in official and usable reserves signals improved liquidity conditions and strengthened economic buffers for the Maldives as it navigates ongoing external obligations and global market pressures.
