BML Suspends USD Transactions for Debit Cards and Limits Credit Card Usage

The Bank of Maldives (BML) has announced immediate changes to its card transaction policies. Effective from today, the bank has suspended the allowance for foreign transactions for debit cards linked to Maldivian Rufiyaa (MVR) accounts.

Additionally, the monthly limit for foreign transactions on Standard and Gold credit cards has been reduced to USD 100.

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The decision, as stated by the bank, is a measure to ensure continued support for essential economic activities amid rising foreign currency spending and stagnant foreign currency sales to the bank.

The specific changes are:

• Existing debit cards: Suspension of allowance for foreign transactions for cards linked to MVR accounts.
• New debit and credit cards: Suspension of allowance for foreign transactions for cards linked to MVR accounts.
• Existing Standard and Gold credit cards: Monthly limit for foreign transactions reduced to USD 100.

Karl Stumke, BML’s CEO and Managing Director, explained that the bank has observed a significant disparity between the amount of foreign currency purchased from customers—approximately USD 60 million this year—and the card usage, which is three times higher.

“This imbalance impacts our ability to provide necessary foreign currency support to our business clients,” Karl said. “We face a situation where the bank provides substantially more foreign currency for discretionary spending on cards compared to the economic sector.”

Karl emphasised that the bank must protect its depositors and cannot continue to sell more foreign currency than it acquires. He noted that customers using USD credit cards or debit cards linked to USD accounts are not affected by these changes and can continue to use their cards up to the available balance.

The bank advises customers with recurring international payments to consider opening a USD account, which can be done easily through Internet or Mobile Banking without visiting a branch.

Karl acknowledged the significant impact of these changes on customers but assured that they are intended to be temporary. He also committed to regularly reviewing the situation and keeping customers updated on any future adjustments.

“We have not taken this decision lightly but have been compelled to act to ensure we can continue to provide necessary support for essential economic activities,” Stumke concluded.