Maldives’ reserves decline by USD 72 million in September

The Maldives’ official reserves declined by USD 72 million in September compared to the previous month, according to the latest statistics released by the central bank.

According to information published on the Maldives Monetary Authority (MMA) website, the Maldives had USD 443.88 million in its official reserves at the end of August – an increase of USD 48.45 million compared to the end of July.

However, the figure declined to USD 371.22 million as of September 24.

The usable reserve has increased to USD 61 million in August. But the figure has now declined to USD 49 million.

The decline in reserves comes as the Maldives settled a coupon payment of around USD 25 million on Monday on a USD 500 million sukuk that is set to mature in 2026.

Also on Monday, the MMA signed an USD 400 million and INR 30 billion currency swap agreement with the Reserve Bank of India (RBI).

The agreement is expected to replenish Maldives’ reserves.

Maldives has an external debt service obligation of about USD 600 million in 2025 and more than USD 1 billion in 2026.

Citing default risks, Moody’s has downgraded Maldives’ credit rating from CAA1 to CAA2, while Fitch downgraded the country’s credit rating from CCC+ to CC.

However, the MMA has expressed confidence in the capability of the government to meet its external debt obligations, citing improvements in its foreign exchange reserves.

The Maldivian government previously said it plans to refinance USD 500 million (MVR 7.7 billion) of the debt repayment obligations due in 2026. It has also rolled out reforms, including amendments to its foreign exchange regulations.