Hithadhoo MP Azaan Reveals Bank Suspended Dollar Transactions Due to Currency Shortage
25 August 2024 - 09:15
Hithadhoo MP Ahmed Azaan has disclosed that the Bank of Maldives (BML) has temporarily suspended dollar transactions due to a severe shortage of U.S. dollars. In a tweet on X, Azaan highlighted the difficulties this decision poses for many individuals.
Azaan underscored that if there were alternative options, the government—being the primary shareholder of the bank—would have pursued them. The central bank's role in purchasing dollars is also pivotal, but it is constrained by current market realities.
The MP further revealed that payments for foreign debt, oil purchases for the Maldives, and dollar issuance to banks will be disclosed publicly. Azaan noted that August and September saw record levels of foreign debt servicing, contributing to the volatility of the dollar. With limited dollar reserves, priorities have shifted towards debt repayment and oil procurement.
In response to the suspension and the broader economic impact, BML has decided to convene a meeting of its board members to reconsider the recently announced policy changes. The bank indicated that further official announcements regarding adjustments to dollar transaction limits will be made following the board’s review.
The government is currently navigating challenges associated with the suspension and economic reforms. Officials are optimistic that solutions will emerge to address these issues in the future, aiming to stabilize the financial situation and provide clarity for affected customers.