The Maldives’ official reserves are expected to increase to $705 million by the end of 2025.
This is an increase of $51 million from this year’s anticipated reserve level of $653.6 million.
According to the “State Budget Position Report 2025,” this positive shift is attributed to the anticipated boost in foreign exchange inflows to the Maldives Monetary Authority (MMA), driven by new foreign exchange regulations implemented earlier in October.
At the end of 2023, the official reserves were recorded at $590.5 million.
The Finance Ministry has proposed a budget of MVR 56.6 billion for next year, with expenditure estimated at MVR 49.2 billion. Of this, MVR 35.9 billion will be recurrent expenditure, and MVR 13.3 billion as capital expenditure. In addition, MVR 3.9 billion has been earmarked for debt repayment.
The government has also allocated MVR 3.2 billion for loan issuance, including MVR 1 billion for housing loans at a five percent interest rate.
The government is expected to receive MVR 39.8 billion as revenue and grants next year. Therefore, the proposed budget is a deficit budget of MVR 9.4 billion.
