Pres. Muizzu: BML indicates USD issue will significantly ease up by the end of the month

President Dr. Mohamed Muizzu, on Monday, stated that the national bank, Bank of Maldives (BML), has indicated that the US dollar challenges currently faced are expected to ease by the end of this month.

With an increase in demand for US dollars, BML has introduced several measures aimed at limiting dollar transactions. These restrictions have raised concerns among individuals and businesses alike, as they have resulted in increasing difficulties in conducting financial transactions.

Responding to a question from Sun during a press conference held on Monday seeking a timeline to resolve the issue, the President explained that the measures were introduced by BML to address difficulties faced by the bank.

"However, based on information I have received from the President's Office yesterday, there has been an indication [from the bank] that, God willing, there," the President said.

While foreign transaction limit on BML cards was already in effect, the bank introduced further restrictions last month. These included limiting the use of cards taken overseas by residents for ATM withdrawals and foreign currency POS transactions.

Furthermore, BML stated that, in an effort to ensure a more equitable distribution of the allocated e-commerce budget, the number of monthly e-commerce transactions has been capped at 30 per customer.

At the same time, the bank announced a new policy to issue dedicated student cards to Maldivian students studying abroad who do not possess their own cards, replacing the previous practice of using cards issued to parents.

BML had earlier stated that it observed some individuals using personal Rufiyaa cards to purchase large volumes of goods for commercial purposes through online shopping platforms.

According to the bank, this practice resulted in a disproportionate share of foreign currency sales being utilized by a relatively small number of individuals.

To ensure that available foreign currency is distributed more broadly among the public, BML decided to regulate such transactions through a daily allocated foreign currency budget.

Demand for US dollars in the Maldives remains exceptionally high, with black market exchange rates remaining between MVR 18 and MVR 20 for several months. The situation continues to present significant challenges for businesses in the import-dependent economy and has contributed to rising prices of goods across the country.