The Maldives Monetary Authority (MMA) has reported a significant strengthening of the nation’s economic buffers, with official reserve assets climbing to over USD 1 billion for the first time in recent years, while critical usable reserves have seen a substantial rise, exceeding USD 300 million as of January 2026.
According to newly released central bank data, the country’s total official reserves stood at USD 1.03 billion at the end of January, marking a 4 percent increase from the USD 983.04 million recorded at the close of December 2025.
This milestone represents the highest level for official reserves since 2020, a period that was temporarily bolstered by a USD 400 million currency swap facility with the Reserve Bank of India and the issuance of a USD 250 million sovereign bond.
More critically, the nation’s usable reserves—a key indicator of immediate financial liquidity—have shown a remarkable recovery. This figure, calculated by deducting short and medium-term foreign exchange obligations from available assets, surged to USD 301.4 million in January. This represents a robust 25 percent increase from the USD 244.1 million held just a month prior and signals the strongest position for usable reserves after a period of significant weakening over the past two years. The improvement comes despite substantial short-term foreign exchange obligations, which stand at USD 839.8 million.
Analysts point to two primary drivers behind this positive trend. The first is the sustained and strong recovery of the tourism sector, the nation's primary economic engine. The second is the impactful enforcement of the Foreign Exchange Act, which came into force in January of last year. This legislation mandates that tourist establishments exchange a portion of their foreign currency earnings to local banks.
In a related move to ensure market stability, the MMA has also increased its dollar allocations to importers, particularly in preparation for the increased demand during the holy month of Ramadan. From 17 February, banks were instructed to issue dollars to businesses for a three-week period at a rate 32 percent higher than normal, a measure designed to smooth the importation of essential goods and prevent shortages.