Foreign reserves decline by US$ 40 mln

The Maldives' official reserves fell by US$40.7 million in October.

The central bank, Maldives Monetary Authority (MMA)'s statistics show that the reserves have been declining month by month since April this year. The figures show that the government's official reserves stood at US$499.6 million as of October.

January - $753.4 million
February - $766.2 million
March - $865.2 million
April - $829 million
May - $807.9 million
June - $750.4 million
July - $728.2 million
August - $658 million
September - $540.3 million
October - $499.6 million

The Finance Ministry estimates that the official reserves will be US$606 million by the end of 2023. The government estimates that the reserve will hold US$ 657 million by the end of the current year.

Reserves increase and decrease with changes in the economy. Although the amount in the usable reserve was publicized in the past, the central bank no longer discloses the information. Therefore, the public does not have a clear idea of the country's true economic situation.

Despite the changes in the reserves, Finance Minister Ibrahim Ameer is confident that the Maldives' reserves will have the estimated amount by the end of the year. The minister said the reserves are declining faster than expected, and it is not only the Maldives' reserves that have been affected. One of the most significant factors affecting reserves is the increase in commodity prices in the global market.