In a sign of improving fiscal stability, Maldives’ official foreign exchange reserves have surged to an all-time high, according to the latest data released by the central bank, Maldives Monetary Authority (MMA).
Figures for March reveal that official reserves climbed to USD 1.33 billion, marking a robust 4.7 percent increase from the USD 1.27 billion recorded in February.
More critically, the nation's usable reserves—a key indicator of immediately available financial firepower—saw a dramatic upswing. This metric, calculated by deducting short-term foreign exchange obligations from total reserves, jumped by 21.3 percent to around USD 409 million in March, up from USD 337 million the previous month. This impressive growth of over USD 72 million signifies a stronger capacity to manage immediate financial needs.
These strengthened reserve figures were reported prior to the government's recent settlement of its largest-ever debt obligation—a USD 500 million sukuk. The repayment, which was executed on 2 April without the need for additional borrowing, was facilitated through a combination of the Sovereign Development Fund (SDF) and state reserves.
The government's strategic financial management is further highlighted by the explosive growth of the SDF, which has ballooned from USD 2 million to USD 275 million since the administration took office, with USD 150 million allocated specifically for the sukuk repayment.
This bolstered position is attributed in part to a new foreign exchange law enacted in January 2025, which mandates the conversion of a portion of tourism revenues into dollars through local banks. This policy has created a steady inflow of foreign currency, sold by commercial banks to the central bank, thereby providing a consistent stream to reinforce the nation's financial buffers.