Bank of Maldives Implements Strict Monthly E-Commerce Allocations and Daily MVR Card Limits to Safeguard Foreign Currency Reserves

Citing surging demand that has severely strained its foreign currency liquidity, the Bank of Maldives (BML) has announced the implementation of strict new daily transaction limits and categorical monthly allocations for MVR cards used on international e-commerce platforms.

While BML MVR cards currently allow customers to make purchases from over 40,000 international platforms—with usage averaging more than 20,000 transactions daily this year—the foreign currency required to support this spending has drastically outpaced the bank's available US Dollar liquidity. This sustained imbalance has not only pressured reserves but has also severely impacted other foreign currency services, leading to delays in Telegraphic Transfers (TTs) and a subsequent rise in customer grievances.

To responsibly manage reserves and secure the uninterrupted procurement of essential goods, BML is capping total international e-commerce spending via MVR cards at USD 16 million per month. Under this framework, daily transaction limits will be established across various merchant categories, resetting daily at 7:00 am.

Breakdown of the New Allocations:

Top E-Commerce Merchants (USD 3 million/month): A combined daily allocation of approximately USD 100,000 will govern transactions with the 150 most frequently used global platforms, including retail and tech giants like Amazon, Apple, Alibaba, and Temu.

Travel and Accommodation (USD 6 million/month): Accounting for the largest single share, approximately USD 200,000 per day will be dedicated to online airline ticket purchases and hotel bookings. To curb the misuse of foreign currency for third-party ticket purchases, BML has instituted a strict limit of three transactions per customer within a three-month period for this category.

Essential Subscriptions and Vital Services (USD 3 million/month): Roughly USD 100,000 per day is set aside for essential customer subscriptions and critical digital services.

Social Media Platforms (USD 1.5 million/month): Transactions involving major platforms like Meta (Facebook, Instagram) and TikTok will be capped at approximately USD 50,000 daily.

All Other Merchants (USD 1.8 million/month): Designed primarily to curb discretionary and non-essential spending, remaining international merchants will share a cap of roughly USD 60,000 daily.

Health and Education (Exempt): Recognising critical human needs, transactions relating to medical services and education are exempt from category and merchant-level limits. They will draw from the overarching USD 16 million pool, backed by a dedicated buffer to ensure uninterrupted access.

BML has stated that if a specific category's daily limit is reached, customers must wait until the limits reset the following day or utilise a US Dollar card to complete their purchases. The bank emphasised that these transparent limits will be subject to periodic review, with allocations adjusted should foreign currency liquidity conditions improve.