Official Reserve Assets Slightly Rise as Usable Reserves Decline in August
Official reserve assets reached USD 643.8 million, up from USD 638 million recorded in July. | Photo: MV+
The Maldives Monetary Authority (MMA) has released updated statistics revealing a 0.9 per cent rise in official reserve assets at the end of August 2026, alongside a 9.6 per cent drop in usable reserves.
Official reserve assets reached USD 643.8 million, up from USD 638 million recorded in July. Meanwhile, usable reserves contracted from USD 221.9 million to USD 200.6 million over the same period.
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The central bank attributed the sharp decline in usable reserves to selling more foreign currency than it received during the month. To ease the foreign exchange market and boost access to foreign currency through the banking system, MMA increased its US dollar sales to commercial banks by 13.4 per cent in August compared to July. Simultaneously, foreign currency collected by the Maldives Inland Revenue Authority (MIRA) in tax and non-tax revenue dropped by 14.3 per cent compared to August.
The Maldivian government recently enacted amendments to the Foreign Currency Act to strengthen foreign exchange management. Under the updated framework, Category A tourism establishments—comprising resorts, integrated tourist resorts, and private islands—must exchange 40 per cent of their gross monthly revenue in US dollars, up from 20 per cent.
Non-tourism entities earning dollar revenue also face an increased mandatory threshold, raised from USD 15 million to USD 25 million per annum. These businesses must exchange 40 per cent of their monthly revenue in general, or 7 per cent if the business is 100 per cent Maldivian-owned. Category B establishments, including guesthouses, hotels, and liveaboards, must exchange 20 per cent of gross monthly revenue or USD 25 per tourist.
The amendments, taking effect on 1 October, prohibit the advertisement or dissemination of parallel market exchange rates exceeding official rates set by the central bank. Breaches carry fines of up to MVR 500,000 for individuals and up to MVR 5 million for legal entities or registered businesses. Government authorities expect the updated framework to deliver positive economic changes beginning next month.
