The board of directors of the Bank of Maldives (BML) has decided to stop processing dollar transactions on cards linked to Maldivian Rufiyaa (MVR) accounts, according to sources familiar with the matter. The decision comes as the country faces a severe shortage of US dollars and economic difficulties.
While BML has not officially commented on the board’s decision, sources confirmed that the implementation process is underway. The move is expected to impact many Maldivians who rely on MVR-linked cards for dollar transactions, especially for services like Netflix, online shopping, and trading platforms.
The decision comes at a time when the dollar is trading at MVR 18.40 on the black market due to the economic downturn and an acute shortage of U.S. dollars. BML CEO Karl Stumke previously warned of the need for “difficult decisions” as the bank sold more dollars than it received. Speaking at the bank’s annual general meeting in June, Stumke noted that BML sold US$333 million more than it bought last year, describing the situation as “unsustainable.”
Following the implementation of this decision, only cards linked to US dollar accounts will be able to process dollar transactions. Analysts predict that this change will push more people towards the black market to buy dollars, potentially driving the exchange rate to record highs.
Since the COVID-19 pandemic, BML has imposed a limit on MVR account-linked cards, capping dollar transactions at US$250 per month. This limitation has frustrated many Maldivians, who now see the new decision as a failure to fulfil President Dr Mohamed Muizzu’s campaign promise to increase the limit.
