After an increase in foreign exchange reserves at the end of August, both gross reserves and usable reserves declined in September, according to data released by the Maldives Monetary Authority (MMA).
Gross foreign reserves stood at US$322 million as of last month, central bank data shows, which is US$72 million less than the month before.
Usable reserves remained at US$49 million; US$12 million less than the US$61 million in usable reserves at the end of August. Current reserves are lower than that which is required for a month of essential imports.
While reserves declined at the end of last month, the situation is expected to improve going forward.
MMA signed a US$400 million currency swap facility with the Reserve Bank of India (RBI) on Monday and an Indian Rupee facility worth INR 30 billion was also confirmed under the SAARC currency swap framework.
The MMA said the swap will facilitate trade transactions between the Maldives and India in Rupees and Rufiyaa.
