Foreign exchange reserves decline in Maldives and India

The Maldives has seen its usable foreign reserves drop by 9.6 percent in August 2026, falling to 200.6 million US dollars. While official reserve assets rose to 643.8 million dollars, the Maldives Monetary Authority noted that the central bank sold more dollars to banks to alleviate market pressure amid declining tax and revenue inflows.

The Maldives' reserve position remains pressured following a 525 million dollar sukuk repayment in April. Additionally, the administration faces criticism regarding pension-fund transactions involving 2.4 to 4 billion rufiyaa, which critics argue increases local currency liquidity while the dollar buffer remains thin.

In India, foreign exchange reserves decreased by 4.92 billion USD to reach 780.78 billion USD for the week ending September 11. This decline was primarily driven by a 2.37 billion USD drop in foreign currency assets and a 2.59 billion USD decrease in gold reserves. Despite the weekly dip, India’s reserves remain significantly higher than they were at the end of March 2026.