Parliament Rejects Emergency Motion on Dollar Restrictions and E-Commerce Fees

The Parliament has rejected an emergency motion submitted by Kendhoo MP Mauroof Zakir over growing public concern regarding newly imposed dollar exchange restrictions and transaction fees on international e-commerce purchases.

Mauroof, a member of the opposition Maldivian Democratic Party (MDP), raised alarm over what he described as “excessive and burdensome” changes by the Bank of Maldives (BML), which include a 30 percent transaction fee on purchases made through major online platforms such as Temu, Shein, Alibaba, Ali Express, Lazada and eBay. The changes came into effect today, July 1.

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Concerns Over Fee Hikes and Foreign Spending Caps

In his motion, Mauroof stated that the recently implemented fee and foreign currency transaction limits have caused widespread frustration among the public. His motion stated that people are already struggling with high living costs and these dollar restrictions are making it worse, especially for those who need to travel abroad for essential reasons like medical treatment. 

The new measures include:

• A USD 125 monthly cap on ATM cash withdrawals abroad using MVR-linked debit cards, with a fixed fee of USD 10 per withdrawal.
• A USD 500 monthly cap on foreign payments for goods and services using MVR debit cards.
• Up to 30 percent transaction fees on purchases made through selected international e-commerce websites.

Impact on Public and Businesses

Mauroof argued that these restrictions disproportionately affect ordinary citizens and small businesses that rely on imports through online platforms. He also claimed that the current dollar policy is “pushing businesses into unofficial channels,” contributing to the growth of a black market for dollars.

He further expressed concern over the tourism sector, which he said is already facing challenges with currency access and now faces additional complications under the new exchange policy.

History of Reversals and Public Backlash

This is not the first time BML has faced criticism for restricting foreign transactions. In August 2024, the bank suspended international transactions on MVR-linked debit and credit cards and slashed credit card limits to USD 100. The decision triggered a wave of public outrage, forcing the bank to reverse its policy within hours.

Similarly, the latest fee hikes and restrictions have sparked renewed backlash from the public. Many took to social media to voice their dissatisfaction, arguing that the government and central bank are failing to provide adequate access to essential foreign currency services.

Despite the widespread concern, Parliament voted against debating the emergency motion.

BML Justifies Move as Anti-Abuse Measure

The Bank of Maldives has defended the latest measures, stating they are intended to curb misuse of personal debit cards for business transactions. According to BML, some individuals and businesses have been handing over personal cards to third parties or using them for high-volume import operations, violating the intended use of the cards.

The bank insists that the policy is aimed at protecting the country’s foreign currency reserves and ensuring fair access to limited dollar resources.

However, with the public and opposition members continuing to criticize the move, the issue remains a politically sensitive one, likely to resurface as dollar shortages persist.