Maldives international reserve increases by 15 percent

The Gross International Reserves (GIR) of the Maldives increased by 15 percent as by April 2024 end, according to the Maldives Monetary Authority (MMA).

According to the central bank, the Maldives GIR stood at USD 622.1 million at the end of April this year, from USD 541. million at the end of March.

This is also a decline of USD 134.7 million from the USD 756.8 million recorded at the end of April 2023.

While the reserves observed a 15 increment from March to April 2024, it was still an 18 percent decline compared to April last year.

Government bodies and institutions are have been working in synergy to improve the fiscal conditions of the Maldivian economy. While the state has placed significant austerity measures on state expenditure, several international financial institutions and organizations praised the efforts while recommending further corrections.

The reserve value in foreign currency has gone up in light of strong tourism receipts as well. As of June 03rd, Maldives has attracted a total of 903,775 tourists - a 10 percent increment from the 821,248 total arrivals observed in the corresponding period last year.

Industry experts project favorable conditions for the Maldivian economy from strong tourist arrival growth coupled with healthy month-on-month export activities.

Since Maldives is an import-heavy country, government has been making efforts to drop reliance on US dollars solely to make payments to foreign importers.

The government also stopped overdraft effective January 2024, which has led to a resurgence in the Maldivian currency's value, subsequently dropping the exchange rate for US dollars.

The same had been highlighted by the President Dr. Mohamed Muizzu, who earlier in March said the country's economy was strengthening gradually.