MDP Criticises Muizzu Over BML Foreign Transaction Limits

Chairperson of the Maldivian Democratic Party (MDP), Fayyaz Ismail, has criticised President Dr Mohamed Muizzu for what he described as uninformed decisions regarding the changes made by the Bank of Maldives (BML) to its foreign transaction limits. 

Fayyaz expressed concern over the impact of the bank’s suspension of foreign transactions on cards linked to Maldivian Rufiyaa (MVR) accounts.

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Previously, BML allowed foreign transactions up to USD 250 for debit and credit cards, with a higher limit of USD 750 for Maldivians living abroad. However, as of last morning, BML has suspended all foreign transactions for existing and new debit and credit cards linked to MVR accounts. The monthly limit for foreign transactions on standard and gold credit cards has also been reduced to USD 100.

Fayyaz, who served as Economic Minister under the last MDP administration, warned that this abrupt policy shift could adversely affect students and businesses, particularly disrupting online payments for various services. He urged the government to consider the implications for the private sector.

In response, BML stated that the decision was driven by a discrepancy between card usage and the bank’s capacity to purchase foreign currency, which has affected its ability to support business customers. BML CEO and Managing Director Karl Stumke acknowledged the significant impact on customers but indicated that the changes are expected to be temporary. He assured that the bank will review the situation periodically and keep customers updated.

The limit on foreign transactions was initially imposed during the economic downturn caused by the Covid-19 pandemic. Despite promises during the 2023 presidential campaign to lift the limit, the increase for Maldivian students abroad, announced in January, has yet to be implemented.

The decision to alter card limits follows recent developments at BML, including the dismissal of Deputy CEO Aishath Nooraddin by the Privatization and Corporatization Board (PCB). This dismissal, however, requires shareholder approval. Additionally, BML’s board underwent changes in January, with all non-executive members initially dismissed and later partially reappointed.