The Bank of Maldives (BML) has reversed its recent decision to suspend foreign transaction allowances on debit and credit cards linked to Maldivian rufiyaa (MVR) accounts. The reversal comes in response to instructions from the Maldives Monetary Authority (MMA), following a significant public backlash.
In a brief statement released on Sunday afternoon, the bank announced: “Changes to card limits for foreign transactions announced on 25th August 2024 have been reversed based on instruction from our regulator, the Maldives Monetary Authority.” The statement provided no further details on the reversal or the specific reasons behind the regulator’s intervention.
The initial decision, which was implemented earlier on Sunday, had suspended foreign transaction allowances for all existing and new debit and credit cards linked to MVR accounts. Additionally, it reduced the monthly foreign transaction limit for existing Standard and Gold credit cards to USD 100. The move was attributed to a significant increase in foreign currency spending compared to the bank’s foreign currency acquisitions, leading to concerns about its impact on the availability of foreign currency for essential economic activities.
The abrupt policy change had caused widespread concern, including a surge in the black market rate for the dollar and increased fears of inflation and economic instability. Analysts and opposition leaders had criticised the decision, warning of severe economic repercussions and disruption to essential international payments.
Following the reversal, customers will no longer face restrictions on foreign transactions linked to MVR accounts, and the bank’s previous policies will be reinstated. The bank has not yet provided further details on how this decision will be implemented or if any additional measures will be introduced in the future.