Official reserve surged to USD 614.6m by October’s end: MMA

The Maldives Monetary Authority (MMA) has revealed that while the 'Official Reserve Assets' sat at USD 371.2 million at the end of September, it had increased to USD 614.6 million by the end of October.

The central bank of Maldives went on to reveal that during this period ‘Other Foreign Currency Assets’ amounted to USD 122.5 million, and both these components are part of MMA's Foreign Currency Assets.

In a press release issued Tuesday to disclose details related to the October 2024 Reserve Data Template, the central bank revealed that under the recently concluded currency swap arrangement between MMA and the Reserve Bank of India (RBI), the authority has received USD 400 million.

MMA stated that while they typically invest such funds in foreign banks, in October this year, MMA invested USD 120 million in local banks. The decision was reached with the purpose of maximizing benefits from the investment and to facilitate financial sector growth and stability in a way that benefits the entire economy, according to MMA.

Further, the central bank’s statistics went on to reveal that the changes in the reserve situation will be reflected in the Reserve Data Template of MMA's Monthly Statistics, and the foreign currency received from the currency swap has been recorded in the 'Official Reserve Assets' in accordance with international standards.

Similarly, since USD 120 million has been invested in local commercial banks instead of foreign banks, the amount has been recorded under 'Deposits Not Included in Official Reserve Assets'.