BML Imposed Dollar Limits Against Muizzu’s Orders, Says Economic Minister
Minister of Economic Development and Trade, Mohamed Saeed, has clarified that the Bank of Maldives (BML) implemented dollar transaction restrictions without adhering to directives from President Dr Mohamed Muizzu.
The initial BML measures, which sparked widespread public backlash, included suspending foreign transaction allowances for both existing and new debit cards, as well as for credit cards linked to Maldivian rufiyaa (MVR) accounts.
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Furthermore, the monthly foreign transaction limit for Standard and Gold credit cards was drastically reduced to just USD 100.
The move triggered significant public criticism, with many voicing their concerns on social media platforms. In response to the outcry, BML has now reversed its decision. As part of the revised measures, foreign transaction allowances for debit and credit cards have been reinstated to USD 250 per month, while Maldivians residing abroad will be granted a higher monthly allowance of USD 750.
Speaking to the media, Minister Saeed explained that although BML operates as a state-owned entity, the government typically refrains from intervening in its operational decisions. However, in this case, the government felt it necessary to step in, given the potential negative impact on residents’ lives.
He assured the public that the government remains committed to safeguarding the financial stability of Maldivian students abroad and small business owners who rely on international transactions.
Additionally, Minister Saeed disclosed that the demand for US dollars in the Maldives averages USD 6.7 billion annually. He highlighted that the newly approved Foreign Investment Bill would play a critical role in opening up the Maldivian economy to free trade markets, which is expected to reduce pressure on dollar demand in the country.
Minister Saeed also expressed confidence in the Maldives’ economic outlook, projecting growth for this year and the next. At a press conference, he acknowledged the challenges faced by the current administration upon assuming office but praised President Muizzu’s efforts to revitalise the economy. The minister mentioned ongoing work by the Cabinet and the Economic Council to curb state expenditure and maintain revenue stability.
He further announced that a forthcoming report will outline changes to financial systems and provide fiscal estimates for the next three years. This report, developed in collaboration with the Development Bank of the Maldives and Parliament, will also include updates on the Foreign Investment Bill and other reforms aimed at bolstering economic growth in the coming years.
