BML expects dollar transactions to normalize next week after surge in outflows

Dollar transactions are expected to return to normal by the end of next week, the Bank of Maldives (BML) has forecast.

BML said foreign currency transactions from rufiyaa accounts have risen sharply this year. The bank sold an average of USD 81.6 million per month as of August last year, compared to USD 653 million during the same period this year, an increase of 33 percent, according to the bank.

If sales continue at the current pace, BML estimates that its total dollar sales will reach USD 1 billion by the end of the year.

Breakdown figures released by BML show that the bank sold USD 38 million per month for debit and credit card transactions, USD 27 million for telegraphic transfers (TTs), USD 9.4 million for Maldivians travelling abroad, and USD 7.3 million for medical and educational purposes.

However, BML said this level of outflow is not sustainable compared to the bank’s dollar inflows. September is expected to be the most challenging month for dollar availability, the bank noted.

BML said it had experienced delays in completing dollar transactions over the past two weeks due to the surge in outflows. But measures taken to sustainably manage inflows have now helped bring outflows back in line with the bank’s dollar receipts, it said.

As a result, BML expects dollar transactions to return to normal before the end of next week. Updates will be communicated to customers through the bank’s official channels.