The Maldives’ official reserves fell by $40.5 million in May, latest central bank figures showed, as the country continues to face pressure from external economic challenges.
Data from the Maldives Monetary Authority (MMA) showed reserves stood at $815.8 million at the end of May, down from $856.3 million a month earlier.
Although overall reserves declined, MMA data indicates that usable reserves — the portion available for immediate foreign currency needs — rose from $171.3 million in April to $217.8 million in May.
June figures have yet to be published.
The drop in reserves comes amid broader economic challenges. The Maldives is currently rated ‘Caa2’ by Moody’s and ‘CC’ by Fitch, placing the country in the high-risk or “junk” category for creditworthiness.
Inflation remains elevated. The National Bureau of Statistics reported that consumer prices in May were 4.55% higher than the same month last year. Month-on-month, prices increased by 0.48 percent from April.
Electricity prices saw the sharpest annual rise, jumping nearly 13%. Smaller increases were also recorded in the cost of fruit, seafood, and dairy products — partly due to global price trends and limited local supply.
However, some categories provided limited relief. Vegetable prices fell by more than 1.5% in May, while the cost of fish, mobile services, and water supply also declined slightly.