BML: USD 1.7M sold in the past 30 months, marking a 77% increase

Bank of Maldives (BML), on Sunday, said that its foreign exchange sales to customers reached USD 1.7 billion over the past 30 months, representing a 77 percent increase compared to the preceding 30-month period.

According to figures released by the national bank, a total of USD 2.7 billion was sold to customers over the past five years. Of this amount, USD 1.7 billion was transacted during the last 30 months, spanning the period from January 2022 to June 2024.

BML stated that the largest share of these foreign exchange sales was generated through card transactions made by customers using Maldivian Rufiyaa accounts. The bank noted that spending in this category more than doubled compared to the 2021–2023 period, recording a 102 percent increase.

The breakdown of increased dollar sales across other categories over the past 30 months is as follows:

TT and Remittances: An increase of USD 126 million

Education and Medical Expenses: An increase of USD 67 million

Outbound Travel: An increase of USD 109 million

The bank further stated that it has sold an average of USD 80 million per month so far this year, representing a fourfold increase compared to the monthly average of USD 21 million recorded in 2021.

As the Maldives remains heavily reliant on imports and many citizens travel abroad for essential services, demand for US dollars continues to be high. However, concerns over the rising value of the dollar and ongoing foreign currency shortages have persisted in recent months.

Although the official exchange rate set by the central bank remains at MVR 15.42 per US dollar, many individuals continue to obtain dollars through the parallel market, where the exchange rate has remained above MVR 20 for several months.

Against this backdrop, BML has stated that demand for US dollars continues to significantly exceed the bank's foreign currency inflows. As a result, the bank has maintained limits on the amount of foreign currency customers can purchase for various purposes. These restrictions have drawn criticism from the public, with many citing the challenges they create for routine transactions and overseas spending.

The current administration assumed office after pledging to stabilize the exchange rate and eliminate the parallel foreign exchange market. The government has continued to maintain that measures to ease the dollar shortage are forthcoming. On Thursday, Ibrahim Falah, the Parliamentary Group Leader of the ruling People’s National Congress (PNC), defended the administration, stating that there has never been a period when US dollars were more accessible to the public than they are at present.