Nasheed: People need clear explanation of state of country’s finances

Former Maldivian president Mohamed Nasheed said on Sunday that the country’s political leaders must fulfil their duty and provide a clear explanation of the current financial situation to the people.

Nasheed made the remarks in a post on X on Sunday, after the national bank implemented changes to its card limit for foreign transactions.

The bank suspended foreign transactions for existing debit cards, as well as new debit and credit cards linked to MVR accounts. It also lowered the monthly limit for foreign transactions on standard and gold credit cards to USD 100.

Nasheed wrote on X that political leaders have a huge responsibility right now.

“They need to explain to the people in clear terms how the state of the country’s finances fell to this level, what is expected to happen next, and how they plan to overcome this,” he said.

Mi vaguthu hurihaa siyaasee leaderunge zinma varah bodu. Maalee haalathu mihisaabah dhiyagothai, dhen vedhaane kamah lafaa kurevey gothai adhi araigathumah amalukuran raavaifai oiy goiythah saafu bahun rayyithunnah kiyaadheyn jeheyne.

— Mohamed Nasheed (@MohamedNasheed) August 25, 2024

Bank of Maldives (BML) had previously allowed up to USD 250 in foreign transactions from its debit and credit cards, allowing a higher allowance of up to USD 750 for Maldivians residing overseas.

The bank said that it decided to make the changes because the card usage is threefold higher than foreign currency it is able to purchase – impacting the bank’s ability to provide foreign currency support to its business customers.

BML’s CEO and Managing Director Karl Stumke acknowledged that the changes will have a significant impact on the bank’s customers, but said the bank accepts the changes to be temporary.

“We do expect this to be a temporary change and we will review this from time to time and keep our customers informed of any changes,” he said.

“We have not taken this decision lightly but have been compelled to take action to ensure we can continue to provide the necessary support for essential economic activities.”