Former President Mohamed Nasheed has called for a transparent explanation of the Maldives’ financial situation, following the Bank of Maldives’ recent decision to alter foreign transaction limits on its debit and credit cards.
In a post on X, Nasheed urged that political leaders take responsibility by clearly communicating to the public how the financial crisis developed, what future steps are anticipated, and the planned measures to address the situation.
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 Maldivian rufiyaa (MVR) accounts. This decision also includes reducing the monthly foreign transaction limit for existing Standard and Gold credit cards to USD 100.
Karl Stumke, CEO and Managing Director of the Bank of Maldives, explained that the changes are due to a significant disparity between foreign currency acquisition and expenditure. The bank has purchased approximately USD 60 million in foreign currency this year, but card usage has been three times that amount. Stumke noted that this imbalance affects the bank’s ability to provide foreign currency support to businesses, with a current disparity where 75% less foreign currency is allocated to economic sectors compared to discretionary spending.
Customers with USD credit or debit cards linked to USD accounts will not be impacted by these changes and can continue using their cards within their available balance. Stumke advised customers with recurring international payments to switch their debit card’s primary account to USD to facilitate overseas transactions and noted that opening a USD account with the bank is straightforward and can be done online.