Foreign Reserves Stable, Ministry Says No Cause for Concern Despite Debt Obligations

The Ministry of Finance and Planning says the Maldives’ foreign exchange reserves remain at adequate levels, stressing there is no immediate cause for concern following the escalation in the conflicts in the Middle East — though the reserves include funds earmarked for upcoming external debt repayments.

In a press statement, the Ministry of Finance and Planning said it is closely monitoring the potential fiscal and economic impacts of the escalating Middle East conflict in coordination with relevant state institutions, while preparing contingency measures to mitigate risks.

މެދުއިރުމަތީގެ ހާލަތާ ގުޅިގެން ރާއްޖޭގެ މާލީ އަދި އިގްތިސާދަށް ކުރިމަތިވެދާނެ ނުރައްކާތަކުން ރައްކާތެރިވުމަށް އަޅަމުންދާ ފިޔަވަޅުތަކާ ބެހޭ ނޫސްބަޔާން pic.twitter.com/aP5wTRnrdN— Ministry of Finance and Planning (@MoFmv) February 28, 2026

MMA data shows that foreign reserves currently stand at USD 1.02 billion, reflecting a 4.4 percent increase compared with the previous month. However, it is worth noting that the reserves include funds earmarked to service upcoming external loan repayments before potential default risks arise, underscoring the importance of maintaining adequate liquidity levels.

Last year, Finance Minister Moosa Zameer told Parliament during the presentation of the proposed 2026 budget that the year would be critical as the government is scheduled to settle USD 600 million in loan repayments. He said the ministry had factored these obligations into the budget, setting fiscal targets aimed at restoring debt sustainability and strengthening macroeconomic stability. 

In the press release issued last night, the ministry noted that as the Maldives relies heavily on fuel imports from Middle Eastern countries, it is working with the State Trading Organization (STO) to ensure a stable fuel supply and minimise potential disruptions to supply chains.

It added that authorities are also closely watching developments affecting tourism, international transport and foreign exchange flows, given the sector’s importance to the national economy. Officials said foreign currency transactions remain stable and that policy adjustments will be implemented as necessary to safeguard financial stability.

The statement follows heightened regional tensions after Iran launched attacks on United States assets across several Gulf Arab states, reportedly in retaliation for a large-scale joint strike by the US and Israel, according to Al Jazeera. The report cited the Fars news agency in stating that Iran targeted sites in Bahrain, Kuwait, Qatar and the United Arab Emirates, where airbases hosting US assets are located.

Iran also confirmed that its Supreme Leader, Ali Khamenei, was killed in an Israeli airstrike.Separately, President Mohamed Muizzu established a Special Cabinet Committee to respond to the evolving situation in the Middle East. The President’s Office spokesperson, Heena Waleed, said the committee was formed to coordinate joint measures to address potential difficulties Maldivians may face amid the ongoing crisis.