Gov’t Reveals No Decision Yet on Lowering USD Transaction Limits

The Ministry of Finance has disclosed that the Bank of Maldives (BML) has reportedly assured the Finance Ministry that it has not yet made a decision to lower the limit for US dollar transactions on the bank’s debit and credit cards.

In a statement released yesterday, the Finance Ministry stated that collaborative efforts involving the Ministry, alongside the Maldives Monetary Authority (MMA) and BML, are underway to introduce positive adjustments to the limits on credit and debit cards, as well as in the foreign currency market, considering the economic and financial conditions prevailing in the Maldives.

The Ministry reiterated the government’s continuous commitment to enhancing the nation’s economic and financial landscape, alleviating obstacles posed by debts, and facilitating easier access to foreign currency. 

Furthermore, they assured that the current administration remains steadfast in steering the Maldives towards financial sufficiency, despite the economic and financial challenges inherited upon taking office.

Presently, the monthly limits for USD transactions via the national bank’s debit and credit cards stand at USD 250 and USD 750, respectively.

A source within BML has acknowledged the bank’s intention to revise its card limits and indicated that an official announcement is imminent. The decision, according to the source, is attributed to a significant shortage of USD.

In December, the cabinet had approved an increase in the card limit for US dollar transactions for overseas Maldivian students from USD 750 per month to USD 1,200, with the change slated to take effect on February 1.

However, a day prior to the deadline, the Finance Ministry issued a statement acknowledging challenges in implementing the adjustment.

The scarcity of USD has resulted in the black market exchange rate surpassing MVR 18, exacerbating inflation in the Maldives, a nation heavily reliant on imports.