Maldives Monetary Authority (MMA), the central bank of Maldives has revealed that by the end of January 2021, the usable international reserves have depleted to USD 149 million.
This is a 13 percent decrease compared to December's reserve amount. By the end of December 2020, the usable reserve was at USD 173 million. Compared to January 2020, the usable reserve of January 2021 has decreased by 51 percent.
In addition, the gross international reserves of MMA has also decreased in January. Reserve data shows that by the end of January 2021 the gross international reserve was at USD 830.7 million. This is a decrease of USD 154 million.
The usable reserve of Maldives usually contains sufficient funds for 3 months worths of imports into the country. The current usable reserves might not be enough to cover 3 months export according to some economists.
While the gross international reserves are depleting fast, the state needs roughly USD 140 million for debt services in the first quarter of this year.
Recently speaking to the state media, Finance Minister Ibrahim Ameer stated that the government of Maldives is going to enact measures to ensure that USD is available at the official rate. The minister hinted that the government plans to de-dollarize the economy though no details have been revealed yet.