The Maldives Monetary Authority (MMA) has warned that the country’s usable reserves are expected to be depleted this month. The central bank raised concerns in a letter to the Finance Ministry late last month.
According to the letter, the official reserves stood at $509.2 million at the end of June, with usable reserves at $66.9 million. However, by July 24, official reserves had dropped to $365.4 million, with usable reserves declining to $21.9 million. The MMA projects that usable reserves will further shrink to $17.6 million by the end of July.
The Maldives requires over $70 million monthly to import essential commodities such as oil, staple foods, and medicines.
The government is actively working to implement strong cost-cutting measures in response to the current economic crisis.
