The Bank of Maldives (BML) has found itself at the centre of a political storm, with senior government officials alleging that its decision to suspend foreign transaction allowances on Maldivian Rufiyaa (MVR)-linked debit and credit cards was tied to an attempted coup d’état by the opposition.
The Maldives Police Service (MPS) on Monday launched an investigation into what it described as an attempt to overthrow the government coinciding with the BML’s decision, which was announced on Sunday and quickly reversed after pressure from the Maldives Monetary Authority (MMA). Senior administration officials now demand the resignation of BML’s CEO Karl Stumke, holding the bank accountable for the political turmoil.
Fisheries Minister Ahmed Shiyam, a close aide to President Muizzu, speaking at a rally organised by the ruling People’s National Congress (PNC), alleged that the bank’s decision to suspend foreign transaction allowances on MVR-linked credit and debit cards was orchestrated by the opposition Maldivian Democratic Party (MDP).
Minister Shiyam claimed that the MDP was behind BML’s decision to “choke hold” the people. He cited the timing of the MDP’s press conference, which coincided with BML’s policy announcement, as evidence of this coordination. “This was no coincidence,” he asserted.
In a statement released Monday, the police also raised suspicions of BML’s coordination with the MDP, citing the timing of the bank’s announcement and the MDP’s press conference about the government’s financial situation. The decision, which shocked many, coincided with a surge of activity on social media, with hundreds of “opposition-controlled bot accounts” calling for protests to overthrow the government, police said.
The police have accused the opposition of attempting to capitalise on BML’s decision to destabilise the government. The allegations have sparked further scrutiny of the bank’s actions and increased political tensions nationwide.
Despite the bank’s swift reversal of the decision, which suspended foreign transaction allowances for all existing and new debit and credit cards linked to MVR accounts and reduced foreign transaction limits to just US$100 for standard and gold credit cards, senior government figures have blamed the majority state-owned bank for failing to prevent the crisis. Critics argue that the decision fuelled public unrest, driving up black market currency rates and triggering fears of economic instability.
While condemning the bank’s initial move, analysts have also questioned the administration’s response, with some suggesting the government had ample time to intervene before the announcement went public. It is also noteworthy that the Muizzu administration appointed the majority of members to the BML’s board of directors. Meanwhile, opposition leaders have slammed the allegations as a politically motivated attempt to deflect blame for the country’s economic challenges.
The BML has yet to comment on calls for its CEO’s resignation, while the police investigation into the alleged coup attempt continues.