BML Introduces New Measures to Ensure Fair Access to Foreign Currency

The Bank of Maldives has announced a series of targeted measures aimed at strengthening its foreign currency allocation processes, ensuring that limited foreign exchange resources are distributed more fairly and equitably across the population—particularly for essential public needs such as travel, education, and personal transactions.

The measures were announced at a press conference held by the bank today, where CEO Mohamed Shareef provided details.

The new policies are designed to curb misuse, enhance transparency, and prioritize genuine demand amid continued pressure on foreign currency availability in the Maldives.

Strengthening Controls Through Digital Integration

Under a newly established digital partnership with Maldives Immigration, the bank will enable foreign spending limits specifically for card-present Point of Sale (POS) transactions conducted overseas. This means Maldivians travelling abroad will continue to enjoy seamless card usage for legitimate purchases.

At the same time, the measure introduces stronger safeguards against unauthorized or abusive practices that violate international card network standards. By focusing on physical POS transactions, the bank aims to strike a balance between convenience for travellers and protection against misuse.

Dedicated Support for Students Abroad

Recognizing the unique needs of Maldivian students overseas, the bank has introduced a new provision for those who do not hold their own bank cards. Students currently using a guardian’s card will be issued a dedicated student card with an appropriate foreign spend limit.

Until the issuance process is completed, guardians’ cards may continue to be used for up to three months, ensuring continuity in financial access for students.

Addressing Misuse of Personal Cards for Business Transactions

The bank has identified a pattern in which a small number of individuals use personal foreign spend limits to conduct business-related transactions on certain online shopping platforms. This has resulted in a disproportionate allocation of foreign currency to a limited group.

To address this, a daily budget cap will be introduced for foreign currency sold for such online transactions. Importantly, the bank clarified that no immediate changes will be made to transactions on websites used for legitimate personal purposes.

New Limits on E-Commerce Activity

Data shows that fewer than 3% of customers are conducting more than 30 e-commerce transactions per month—primarily the same individuals engaged in high-volume commercial activity.

To promote fair usage, the bank will now limit monthly e-commerce transactions to 30 per customer. This step is expected to ensure that the allocated foreign currency budget benefits a broader customer base.

Flexibility for Dollar Account Holders

Customers holding accounts denominated in US dollars will continue to enjoy unrestricted usage. Cards linked to these accounts can be used without foreign spend limits, subject only to the available balance in the account.

Relief on Credit Card Fees

In a move to ease financial burdens, the bank announced that customers with multiple credit cards will only be charged one annual fee, as the foreign spend limit is applied per customer rather than per card. No additional annual fees will be levied for holding multiple cards.

Revised Procedures for Telegraphic Transfers (TTs)

The bank has also introduced updates to the handling of telegraphic transfers:

• The sale of USD or other foreign currencies for TT purposes will be processed only during official banking hours.

• However, TT transfers sent in US dollars can still be processed 24/7, including on public holidays.

Additionally, the bank will actively monitor attempts to bypass limits by splitting large TT transactions. Parties engaging in such practices will face restrictions in line with the imposed limits.

Ensuring Fair Distribution

These measures reflect the Bank of Maldives’ broader strategy to ensure that scarce foreign currency resources are distributed in a way that benefits the wider public, rather than being concentrated among a small group of high-volume users.

The bank emphasized that it will continue to review and refine its policies in response to evolving market conditions, with a focus on transparency, fairness, and economic stability.