Maldives’ Foreign Reserves Fall by USD 72 Million in September

The Maldives’ official reserves dropped by USD 72 million in September, as reported by the Maldives Monetary Authority (MMA), the country’s central bank.

The statistics show that the reserves declined from USD 443.88 million at the end of August to USD 371.22 million by September 24.

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In August, the usable reserve had increased to USD 61 million but has since fallen to USD 49 million. This decline follows a recent coupon payment of approximately USD 25 million towards a USD 500 million sukuk, which is due to mature in 2026.

To bolster its reserves, the MMA signed a USD 400 million and INR 30 billion currency swap agreement with the Reserve Bank of India (RBI) on Monday. This agreement is anticipated to provide the Maldives with additional financial flexibility as it navigates significant upcoming debt obligations.

The Maldives faces external debt service requirements of about USD 600 million in 2025 and over USD 1 billion in 2026. In light of these obligations, credit rating agencies have expressed concern. Moody’s recently downgraded the Maldives’ credit rating from CAA1 to CAA2, while Fitch adjusted the country’s rating from CCC+ to CC, citing risks of default.

Despite these concerns, the MMA has expressed confidence in the Maldivian government’s ability to meet its external debt obligations, noting recent improvements in foreign exchange reserves. The government also intends to refinance USD 500 million of debt due in 2026 and has introduced foreign exchange regulation reforms to support financial stability.