The Bank of Maldives (BML) has announced significant enhancements to its foreign currency allocation system in response to growing public concerns over recent changes affecting the usability of MVR cards for international e-commerce and online retail transactions.
The move comes as the bank seeks to balance the country's foreign exchange reserves with the essential needs of its customers amid challenging economic circumstances.
In an official statement, the bank explained that the modifications to overseas transaction capabilities were necessitated by a substantial decline in tourist arrivals attributed to the ongoing conflict in the Middle East. This reduction in tourism has directly impacted the country's foreign exchange earnings, forcing the bank to sell considerable volumes of dollars to facilitate customer transactions abroad.
The bank revealed that it has been selling around USD 1.33 million daily specifically for transactions conducted using cards linked to MVR accounts.
Under the new framework, the bank has implemented a fixed daily budget for e-commerce and online retail transactions. Once this budget is exhausted, certain retail websites will temporarily suspend operations within the Maldives until the following business day. The bank clarified that this restriction applies only to select retail platforms, while other sites will continue functioning normally. Customers are being notified of these changes through alerts sent via the BML mobile application, ensuring transparency and allowing users to plan their transactions accordingly.
The bank provided important assurances regarding cards issued through dollar accounts, confirming that these remain unaffected by the new limitations and can be used for international transactions without any restrictions. Additionally, the changes will not impact the transaction limits established for students or residents abroad.
The bank announced that students currently using their parents' cards for overseas transactions have been given a three-month window to apply for dedicated student cards, which will provide them with continued access to foreign exchange services.
BML emphasised that while increased e-commerce transactions would contribute to revenue growth, the current pressures on foreign exchange earnings and the bank's obligation to meet customer essential needs have made these economic measures unavoidable.
The bank confirmed that it will continue adjusting foreign currency transaction limits for MVR cards in line with the availability of dollars, maintaining a flexible approach to managing the country's foreign exchange resources.