The Maldives Monetary Authority (MMA) announced on Wednesday that the country's usable reserves are expected to increase by the end of August, countering media reports that claimed the government's dollar reserves had run out.

In an official statement, the MMA dismissed these reports as untrue, expressing deep concern over the dissemination of inaccurate information regarding the nation’s financial standing.

The authority reiterated its commitment to transparency, noting that it regularly publishes monthly reserve data and remains confident that reserves will grow by the end of the month compared to July levels.

The Ministry of Finance echoed the MMA's stance, releasing a statement on the social media platform X, urging the public and media to avoid spreading false information about the economy and the government's reserves.

Economic Development Minister Mohamed Saeed also denied claims circulating in the media that the country’s usable dollar reserves are in decline.

According to the MMA, the reserves currently include USD 65 million in the Sovereign Development Fund (SDF), which has been part of the reserve system under an agreement signed between the MMA and the Ministry of Finance in 2019.

The agreement, established during the COVID-19 pandemic, allows the foreign exchange deposited in the SDF to be part of the usable reserves.

However, starting from December 2023, these funds will remain in dollars instead of being deposited with the MMA.

As of July, usable reserves stood at USD 45 million, excluding the USD 65 million in the SDF.

The MMA noted that the government is actively working on measures to further increase foreign exchange reserves, with a focus on growing tourism-related industries and securing financing for foreign exchange transactions from various international sources.

Additionally, the MMA has been employing currency swap arrangements to boost liquidity, expecting up to USD 400 million in financing through such methods, with USD 100 million already utilized to bolster reserves in 2023.

The MMA highlighted its ongoing collaboration with government ministries, particularly the Ministry of Finance, to stabilize and improve the Maldives’ economy since Ahmed Munawar took over as Governor.

The central bank remains optimistic that, despite the challenges, joint efforts by the MMA, government ministries, and financial institutions will yield positive results in strengthening the country's financial position.