Students Studying Abroad to Receive Stipend Amount Instead of USD 1,000 Limit

Bank of Maldives (BML) has implemented changes to the dollar stipend provided to local students studying abroad, citing guidelines from the Maldives Monetary Authority (MMA). 

According to a notice issued by the bank, the adjustment affects how US dollars are sold to students and locals travelling abroad for medical purposes.

advertisement

The amendments, outlined by BML, introduce a new procedure for the sale of US dollars specifically for local students, aligning with stipend rates established by the Maldives Higher Education Ministry. 

Previously, BML had been disbursing a monthly stipend of USD 1,000. However, the updated guidelines reflect varying stipend rates for different countries, which have been set lower than the previous universal amount.

For instance, the stipend rates now stand at USD 400 for Bangladesh, USD 440 for India, USD 416 (MYR 1,960) for Malaysia, and USD 450 for Sri Lanka. These adjustments come amidst recent challenges faced by the Maldives in sourcing US dollars, resulting in an increase in black market exchange rates. Despite this, the official exchange rate remains steady at MVR 15.42 per USD.

Furthermore, BML has imposed restrictions on the withdrawal of US dollars via ATMs or bank branches, capping the limit at USD 1,600. The bank has also limited US dollar transactions conducted through its cards. Efforts by the current administration to raise these limits have been hampered by ongoing dollar shortages.

The changes introduced by BML are aimed at managing the availability and distribution of US dollars in line with regulatory directives and economic conditions affecting the Maldives.