BML Reverses Decision on Dollar Transaction Limits After Government Intervention

MALE, Maldives — The Bank of Maldives (BML) reversed its earlier decision to limit foreign transactions on Maldivian Rufiyaa-linked visa cards after a swift intervention by the government and public outcry, the bank confirmed in a statement issued this afternoon. The reversal, mandated by the Maldives Monetary Authority (MMA), came just hours after the new restrictions were imposed, underscoring the delicate balance between financial regulation and public demand in this island nation.

The restrictions, announced on the morning of August 25th, sparked immediate concerns among the public, particularly affecting students studying abroad and small businesses reliant on dollar transactions. The government swiftly responded, with senior ministers addressing the issue in a press conference held at the President’s Office in the afternoon.

Economic Minister Mohamed Saeed criticized the initial decision, stating that it was “not the best decision” and contrary to the government’s prior consultations with BML. “Our President does not want an option where our students studying abroad do not get dollars into their accounts,” Saeed emphasized during the briefing. He noted that President Dr. Mohamed Muizzu had been closely monitoring the situation and had personally intervened by engaging with BML’s CEO, Karl Stumke, to resolve the matter.

“The President has been watching it very closely. When the card limitation was introduced, it was not done in the most appropriate way. There are students studying abroad. There are small businesses that deal in dollars,” Saeed reiterated, reflecting the government’s stance that the decision lacked consideration for its broader impact.

Foreign Minister Moosa Zameer also weighed in, revealing that despite ongoing discussions with BML, the bank had not aligned its actions with the government’s recommendations. Finance Minister Dr. Mohamed Shafeeq detailed the behind-the-scenes efforts to support BML, including critical meetings held in December, March, and June, aimed at alleviating the bank’s concerns over dollar shortages.

“The dollar stagnation has decreased significantly, and this is the time of the year when dollars are in short supply,” Shafeeq explained, highlighting the seasonal challenges the tourism reliant nation faces with foreign currency inflows. He assured the public that the government is actively working to boost dollar inflows from revenue-generating sectors and prevent similar issues in the future.

Despite the rapid reversal, the incident underscores the broader financial challenges facing the Maldives, as the government continues to navigate the economic pressures inherited from previous administrations. The BML’s swift compliance with the MMA’s directive reflects the significant influence of regulatory oversight in the country’s banking sector and the government’s commitment to safeguarding public access to essential financial services.