BML board decides blocking dollar transactions from MVR cards

The Bank of Maldives (BML) board has decided to block all US dollar transactions from cash cards with Rufiyaa primary accounts.

While the decision has not been formally announced by the bank, 'Sun' Online learned, from a trusted source, that the bank has made this decision.

The decision appears to be related to the apparent US dollar shortage in the Maldives, while the currency exchange rate for US dollars in the black market has lifted to MVR 18.40 on average.

Earlier, the bank's Chief Executive Officer Karl Stumke commented that BML may be taking "difficult steps" owing to low circulation in the economy.

Currently, the maximum limit for US dollar transactions to foreign parties is USD 250 per month from BML's credit and debit cards. The bank allows a monthly usage limit of USD 750 for locals residing abroad.

The bank first set the dollar limit amid Covid-19 pandemic in 2020 owing to dollar shortages. Although four years elapsed since the pandemic, the bank did not revert this decision which has attracted public criticism as well.

President Dr. Mohamed Muizzu, during his presidential campaign pledged to quash the US dollar limit. 

His administration, earlier on January 25th, made the decision to lift the monthly usage limit from USD 750 to USD 1200 for students effective February 2024, which however was never implemented.

While the bank's board has made this decision, BML had dismissed its Deputy CEO Aishath Noordeen from the board.

Noordeen, who had served at the bank for 42 years, was notified of her dismissal by Privatization and Corporatization Board (PCB) last Thursday.

Since BML is a public company, its board members can only be removed through a general meeting of the shareholders.

Earlier in January, the bank made changes to the board which included dismissal of all of its non-executive members. However, two of these directors were later reinstated.