Usable reserve at USD 73 million; enough for one month’s imports

Central bank Maldives Monetary Authority (MMA)’s statistics show that the government’s usable reserve presently stands at USD 73 million which is enough for one month’s imports.

According to statistics publicized by MMA, the government’s reserve, at the end of May, stood at USD 485.18 million. USD 73 million remains usable after deductions, as per the central bank.

Approximately USD 75 million is incurred monthly to purchase the necessary imports such as oil, staples and medications. Henceforth, the usable reserve is likely just enough for one month’s imports.

The drop in the reserve has been attributed to the payment of USD 50 million to a USD 100 million bond sold by the government to State Bank of India (SBI).

MMA, last year, has advised the government will face difficulties in funding this year’s budget without securing the majority of the funds required by early this year.

While the funds have yet to be secured, the delays in the implementation of the government’s proposed policy to reduce costs remain the most crucial concern.

Although the government initially planned to switch to a target subsidy system starting from July, it was later decided the system would be implemented in the last quarter of this year.