Maldives’ official foreign reserves fell by seven percent in July, reaching USD 775 million, down from USD 832 million in June, according to the Maldives Monetary Authority (MMA). The decline represents a drop of USD 57 million, following a trend in which reserves have averaged between USD 700 and USD 800 million over the past seven months.
Despite the overall decline, usable reserves rose slightly in July to USD 213 million from USD 203 million the previous month. The MMA reported that the government used USD 213 million (MVR 3.3 billion) from reserves for debt repayments by the end of July. This spending is 60 percent higher than the same period last year, contributing to total reserve expenditures of USD 274 million (MVR 4.2 billion) so far this year.
Tourism-related taxes and fees continue to be the largest source of foreign exchange earnings for the Maldives. The MMA highlighted that these earnings were 30 percent higher in the first seven months of 2025 compared to the same period in 2024, providing crucial support to the country’s financial position.
Official reserves had dropped to USD 371 million in September 2024, but they started recovering afterward. The increase has been supported by stronger tax revenues, tighter regulations on foreign exchange, and currency swap arrangements, helping to stabilize the country’s financial outlook.
As the Maldives navigates ongoing debt obligations and fluctuating foreign exchange inflows, the performance of official reserves remains a key indicator of the nation’s economic health.
