Bank of Maldives confirms continued USD support for business TTs amid FX Surge

The Bank of Maldives (BML) has released an official statement clarifying that its telegraphic transfer (TT) services for businesses remain fully active and are being facilitated under established procedures, despite ongoing pressure on the country's foreign currency reserves.

In the statement, the national bank confirmed that dollar allocations for commercial transactions are ongoing. While the bank acknowledged it may not always be able to fulfill the full requested amount for every single transfer, it emphasized that no business entity seeking support for TT services has been outright denied assistance this month.

"Throughout the current month, we have provided the maximum possible level of foreign currency to meet customer demand," the bank stated.

The clarification comes as the Maldives grapples with tightening foreign exchange conditions. BML cited a widening gap between inflows and outflows, attributing recent liquidity constraints to heightened geopolitical instability in the Middle East, which it said has disrupted typical foreign currency availability in the region.

Despite these headwinds, BML underscored that it continues to manage its FX portfolio actively to shield the import sector from disruption. The bank noted it has specifically increased dollar allocations to ensure the uninterrupted flow of essential goods, including food staples and other necessities.

Financial data released by the bank paints a picture of sharply elevated demand rather than a curtailment of service. In the first quarter of the year, BML sold USD 106.2 million for outward remittances, averaging over USD 35.4 million per month. This figure represents a staggering 142 percent increase compared to the previous year's monthly average of USD 14.6 million.

Year-to-date, the bank has facilitated foreign currency for 38,855 telegraphic transfers. To illustrate the scale of current operations, BML highlighted that in April alone it processed more than 6,800 TTs, including yesterday, where over USD 900,000 was sold across 327 separate transactions.

BML expressed concern over what it termed "irresponsible and baseless information," warning that such narratives risk eroding customer confidence and creating unnecessary public alarm. The bank suggested the report may be part of a broader attempt to undermine trust in its operational stability.

"Accurate information regarding customer transactions and foreign exchange services can only be verified by the bank," BML stated, reaffirming its commitment to maintaining stability in foreign currency services during a period of external uncertainty.