Opposition leader and former Economic Minister Fayyaz Ismail has sharply criticised the Bank of Maldives’ recent decision to restrict foreign transactions on cards linked to Maldivian Rufiyaa (MVR) accounts, warning of its detrimental impact on students and businesses.
Ismail voiced his concerns on X, formerly known as Twitter, stating, “Such a sudden change will have a very negative effect on students and businesses. Payments to websites, software, etc., will be disrupted. I hope the government is aware of the effect this will have on the private sector economy.”
The Bank of Maldives announced on Sunday that it would suspend foreign transaction allowances for all existing and new debit and credit cards linked to MVR accounts, and reduce the monthly foreign transaction limit for existing Standard and Gold credit cards to US$100. The changes are effective immediately and have been introduced in response to the increasing usage of foreign currency for card transactions and the stagnant sale of foreign currency to the bank.
Ismail also criticised President Dr Mohamed Muizzu’s handling of economic issues, highlighting promises made by the head of state. “Dr Muizzu promised that he is not worried at all about the economy and later on very strongly stated dollar black market rate will not increase. Such uninformed decisions by the head of state do have impacts across all sectors,” he said.
The opposition leader’s comments reflect broader concerns among businesses and individuals who rely on international payments for services such as website subscriptions and software purchases. Many fear that the restrictions will disrupt essential operations and increase costs for the private sector.
Despite the backlash, the Bank of Maldives has defended its decision, citing the need to balance foreign currency usage and availability. CEO and Managing Director Karl Stumke stated that the bank’s foreign currency purchases from customers this year amounted to approximately US$60 million, while card usage was three times higher.
Stumke emphasised that the bank cannot continue to sell more foreign currency than it purchases, as this would jeopardise its ability to support essential economic activities. “We have to get the mix correct and ensure we are not squandering a scarce resource,” he said.
