The Maldives’ usable reserves fell by US$40 million over last month to US$73 million, the Maldives Monetary Authority’s most recent economic update revealed. Reserves stood at US$114 million in April.

While usable reserves stood at US$148 million in May last year, it had fallen to US$75 million May this year; almost a 50 percent drop with current usable reserves only just able to cover one month’s imports.

Usable reserves stood at US$179 million at the end of last year. While usable reserves fell sharply, total reserves also fell by 21 percent in May.

Current total reserves stand at US$492 million, down from US$622 million in April. This is the sharpest fall in reserves over the last year — the largest fall in total reserves over a month last year was in October when the figure was at US$552 million.

The decline in reserves follows the administration’s decision to cut public spending in an effort to address the nation’s deteriorating fiscal standing.