Bangladesh proposes currency swap to simplify remittances from Maldives amid USD crunch

The central bank of Bangladesh has proposed three mechanisms to facilitate remittance transfers by Bangladeshi workers in the Maldives, as the tens of thousands of migrant workers in the island nation feel the effects of the dollar crisis.

The three mechanisms proposed by the Bangladesh Bank to the Maldives Monetary Authority (MMA) includes the use of Maldivian rufiyaa, travel-related transactions and a bilateral currency swap arrangement.

In a letter dated October 8 to MMA Governor Ahmed Munawar, Bangladesh Bank Governor Md Mostaqur Rahman said Bangladeshi workers continued to face difficulties sending their earnings home despite efforts to strengthen formal foreign exchange channels in the Maldives.

He proposed cooperation between the two monetary authorities to establish safe, efficient, transparent and cost-effective mechanisms for transferring workers' earnings through formal banking channels.

Under the first proposal, Bangladesh Bank wants to explore the use of Maldivian rufiyaa through an appropriate arrangement under the Asian Clearing Union (ACU). The corresponding funds would be paid to beneficiaries in Bangladesh in taka through authorized dealer banks.

The second proposal involves allowing licensed banks and money transfer operators in the Maldives to make eligible travel-related payments in rufiyaa for Bangladeshi nationals travelling to the country. In Bangladesh, authorized dealer banks could issue taka-denominated cards, with settlements handled through an agreed regulatory mechanism.

The third proposal seeks to explore a bilateral currency swap arrangement between Bangladesh and the Maldives to facilitate the repatriation of Bangladeshi workers' earnings.

Bangladesh Bank said the proposed mechanisms would be subject to regulatory approval and compliance with the laws of both countries.

The central bank also expressed its readiness to hold discussions with the MMA through a joint delegation comprising Bangladesh Bank officials and representatives of the Bangladesh High Commission in the Maldives.

The proposed meeting would focus on regulatory requirements, operational arrangements and settlement mechanisms for implementing the initiatives.

The Maldives has around 200,000 foreign workers, including some 100,000 Bangladeshi workers.

According to Bangladesh Bank's country-wise remittance data, Bangladesh received about USD 118 million in remittances from the Maldives in the fiscal year 2025–26, down from USD 141.1 million the previous year. That represents a year-on-year decline of approximately 16.4 percent.

According to Bangladesh Bank data, Bangladesh received USD 38.05 million in remittances from the Maldives during the first three months of the current fiscal year.