News Desk
MALE, Maldives — The Bank of Maldives (BML) announced changes to its card limits for foreign transactions today, a move aimed at addressing the growing demand for foreign currency amid limited supply. The changes, which are effective immediately, restrict the use of existing debit and credit cards linked to Maldivian Rufiyaa (MVR) accounts for foreign purchases and significantly lower the monthly limit for standard and gold credit cards.
Under the new regulations, existing debit cards and newly issued debit and credit cards linked to MVR accounts will no longer be permitted for foreign transactions. For standard and gold credit cardholders, the monthly limit for foreign transactions has been slashed to just USD 100.
Karl Stumke, CEO and Managing Director of BML, emphasized that the decision was driven by the bank’s need to manage its foreign currency resources more effectively. “We have purchased approximately USD 60 million in foreign currency this year, but card usage is three times that amount,” Stumke said. “This discrepancy hampers our ability to support essential business customers, as we find ourselves allocating 75% less foreign currency to the economic sector than we do to discretionary spending on cards, often for travel and online shopping. We must correct this imbalance to avoid depleting our scarce resources.”
Stumke noted that customers using USD credit or debit cards linked to USD accounts would remain unaffected by the new restrictions. He also encouraged those with recurring international payments to consider linking their debit cards to USD accounts. “Opening a USD account with us is simple and can be done instantly through Internet or Mobile Banking,” he added.
The bank’s CEO acknowledged that the changes would likely cause inconvenience but stressed that they were necessary to ensure the continued provision of foreign currency for essential economic activities. “This is a temporary measure, and we will review it regularly to keep our customers informed,” Stumke said.
The announcement comes on the heels of a shakeup within the bank’s leadership. Just a day earlier, Aishath Noordeen, a long-serving member of BML’s board of directors, was removed by the Privatization and Corporatization Board (PCB). Noordeen had been with the bank for over 42 years, playing a pivotal role in its development. The circumstances surrounding her removal remain unclear, but the timing coincides with the bank’s efforts to navigate these challenging financial pressures.
As the country grapples with economic uncertainties, BML’s latest measures reflect a broader strategy to safeguard financial stability amid a volatile foreign exchange landscape.
