Police Probe Alleged Coup Attempt Following BML’s Suspension of Foreign Transactions

The Maldives Police Service (MPS) has launched an investigation into allegations that the opposition attempted to stage a coup d’état following the Bank of Maldives’s (BML) decision on Sunday to suspend foreign transaction allowances on debit and credit cards linked to Maldivian Rufiyaa (MVR) accounts.

In a statement issued this evening, following similar allegations made at a ruling People’s National Congress (PNC) rally, the police said the state-owned BML’s decision shocked many, which was announced while the opposition Maldivian Democratic Party (MDP) was holding a press conference on the government’s financial situation and as hundreds of “bot accounts” were active on social media, urging people to take to the streets to overthrow the government.

There is reason to believe that the opposition’s actions following BML’s decision, which was made contrary to the Muizzu administration’s instructions, constituted an attempt to overthrow the legitimate government, according to the Police statement.

While the police have accused the opposition MDP of attempting to overthrow the government, BML’s board of directors made the decision on Saturday. The bank publicly announced the decision on Sunday morning.

Political observers believe that the Muizzu administration had ample time to speak with the BML board of directors since the board made the decision and the public announcement to stop the announcement. Following pressure from the Maldives Monetary Authority (MMA), hours after the first announcement, the BML reversed its decision to suspend foreign transaction allowances on its debit and credit cards.

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 initial decision, announced earlier on Sunday, 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 US$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.