Paying loan for Dharumavantha Hospital makes dents in state reserves

  • Usable reserves sank by 35 percent compared to second quarter

K. Male' | Rushdha Rasheed | 17-December-2017 | Sunday 16:06 | rushdhar | Business | 2,895

Central Bank, Maldives Monetary Authority (MMA) -- Photo by: google

Central Bank, Maldives Monetary Authority (MMA), says that there was a dent in the state reserve in the third quarter of the year, due to the work of Dharumavantha Hospital.

MMA third quarter statistics show that total reserves are at MVR 9.9 billion, a figure lower than the figure for the second quarter. However, based on quarter to quarter to figures, the rate of decrease had slowed down by one percent.

MMA said foreign currency reserves for third quarter is at US$ 519.4 million with US$ 191.9 million as usable reserves. Majority of foreign currency reserves are cash stored by other banks in MMA.

The decrease in reserves, MMA said, was caused by a decrease in deposits from other banks and release of dollars to banks to ensure no shortages in US dollar availability.

MMA also said that a significant contribution had gone to financing the loan taken for construction of Dharumavantha Hospital.

Compared to the second quarter, reserves had decreased by 23 percent.

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