September saw the further excessive depletion of the national US Dollar reserve.
According to the statistics released by the central bank, Maldives Monetary Authority (MMA), by the end of September, the state reserve had a total of USD 540 million, of which only USD 194 million was usable.
The national reserve has never been exhausted to such an extent before. By the end of August, the usable reserve totaled USD 244 million and was reduced by USD 50 million within a month.
The usable reserve has seen a steady decline over the last four months.
According to MMA reports, the usable reserve at the beginning of the year was USD 371 million which has decreased by USD 177 million over the last 9 months. This was a total of MVR 2.7 billion.
While the national reserve continues to diminish, one of the largest investment banks of the world, J.P. Morgan has estimated the complete depletion of the Maldivian national reserve by 2023. Furthermore, CEO of the national bank, Bank of Maldives had also foretold the likeliness of Maldives being submerged in a situation resembling the Srilankan financial crisis.
However, the current administration has continued to deny all such notions.