The Bank of Maldives (BML) has announced a suspension of dollar services due to a critical shortage of U.S. dollars, impacting both debit and credit card transactions. Effective immediately, the bank will no longer allow transactions abroad on debit cards tied to Rufiyaa accounts and has significantly reduced the foreign transaction limit on gold credit cards.

The bank's decision means that no dollars will be available for foreign transactions on debit cards if the primary account is a Rufiyaa account. Furthermore, monthly foreign transaction limits for gold credit cards have been slashed to just $100. The policy change affects newly issued debit and credit cards, which will not support international transactions if their primary accounts are Rufiyaa-based.

BML cited difficulties in acquiring dollars as the primary reason for this drastic measure. The bank noted a significant discrepancy between the amount of foreign currency it has been able to purchase and the volume of card transactions. According to BML CEO and Managing Director Karl Stumke, the bank purchased approximately USD 60 million in foreign currency from customers this year, yet card usage has exceeded this amount by threefold.

Stumke explained that the imbalance in currency allocation has impacted the bank’s ability to support business customers with foreign currency. He emphasized the need to correct this discrepancy to avoid depleting the scarce resource.

“We have an anomaly where the bank provides 75 percent less foreign currency to the economic sector compared to discretionary spending on cards used for travel and online shopping, we need to get the mix right and ensure that we are not squandering a limited resource.”

In response to the situation, BML has advised customers to convert their primary debit card accounts to dollar accounts to ensure uninterrupted foreign transactions. Despite the inconvenience, the bank has apologized and assured the public that the decision is a necessary measure given the current economic circumstances in the country.

The bank’s statement highlights its commitment to managing available foreign currency resources prudently while continuing to serve its customers as effectively as possible under the challenging economic conditions.