Bank of Maldives to Raise Foreign‑Transaction Limits Before Month‑End Despite Dollar Squeeze

The Bank of Maldives (BML) has said it will provide much needed relief to soaring foreign‑currency demand by unveiling higher limits for overseas e‑commerce and card‑based payments before the close of the month. 

The move comes after a sharp spike in the black‑market dollar rate, prompting the bank to impose restrictions on international online purchases with MVR cards since last month.

President Dr Mohamed Muizzu had said that the government is actively working on solutions to the chronic dollar shortage, which has forced many businesses and travellers to turn to the informal market. 

Under the current regime, travellers can spend up to USD 1,000 per month via point‑of‑sale (POS) terminals abroad, while a separate ceiling of USD 3,000 per month applies to airline tickets, hotel bookings and hospital payments. 

BML has stressed that these caps have remained unchanged despite the recent surge in demand. The bank now plans to raise the limits and will also roll out a dedicated assistance programme for customers needing funds for medical treatment or education abroad.

The upcoming changes are backed by a robust set of data that underscores the growing appetite for foreign currency. According to BML’s own statistics:

USD 345 million in dollars were sold in the first five months of the year.

USD 198 million of that amount went toward card‑based transactions.

USD 147 million was sold to businesses.

Monthly average sales stood at USD 69 million, a 47 percent increase compared with the same period last year.

BML assured that it was trying to allocate as much foreign currency as possible to meet customers’ needs and the forthcoming limit adjustments are designed to provide relief while maintaining prudent risk management.

The Monetary Authority of Maldives (MMA) has pledged support, assuring BML of additional foreign‑currency liquidity lines if required. In the local banking sector, BML already offers the highest allowable limits for foreign transactions using MVR cards, positioning it ahead of its competitors.

Analysts note that the combination of higher limits and targeted assistance could help curb the black‑market rally by channelling more legitimate foreign‑exchange demand through the banking system.