Its ‘natural’ for BML to need more US dollars, says economic minister

It is natural for the Bank of Maldives (BML) to need more USD dollars in face of foreign currency inflow challenges, says Economic Minister Mohamed Saeed.

The national bank recently lowered the limit for overseas transaction on MVR cards, sparking public complaints, especially regarding difficulties in paying for subscriptions and online businesses.

At a press briefing on Thursday morning, Saeed highlighted on initiatives by the BML to improve sale of US dollar to small and medium enterprises.

He said that the national bank has expanded US dollar access for businesses, and has also made the process more convenient.

Saeed expressed concern that some businesses were splitting a single payment into multiple Telegraphic Transfer (TT) requests in attempts to circumvent limits set by the bank.

He stressed that BML can only issue US dollars based on its foreign currency inflows, and warned of possible changes to the bank’s policies.

Saeed said that there has been an increase in US dollars sold for TTs.

According to Saeed, the BML sold total USD 175 million for TTs last year, which comes down to USD 15 million per month.

The bank sold USD 135 million for TTs as of April 30 this year, which comes down to USD 34 million per month.

Saeed said that this trend shows how business growth is fueling US dollar demand.

“Its natural if the BML is facing dollar inflow challenges. They need to be facilitated more dollars,” he said.

The remarks come a day after Bloomberg News reported that BML has been holding global investor meetings seeking to raise up to USD 300 million in order to increase the amount of foreign currency available in the Maldivian economy.