The Bank of Maldives (BML) is facing a dollar shortage and is unable to sell dollars for telegraphic transfers (TT) of businesses that buy goods from overseas.
BML's dollar support service was previously provided to all businesses that have accounts at the bank. A limit was not set but the bank provided funds for TTs to date.
However, the bank is now unable to provide funds for TTs due to the dollar shortage, according to some businesses that spoke to Adhadhu.
Asked about the issue, a bank official denied stopping the dollar support. Despite not completely ceasing the service, the bank is facing difficulties in supplying dollars for TTs, the official said.
"The Bank of Maldives has been providing dollars needed for sending funds overseas, considering the amount the bank is able to provide at the time, and providing dollar assistance to customers. However, this assistance is based on the amount of dollars in the bank's reserve," the bank official said.
Despite difficulties in dollar support, BML assured that funds in dollar accounts at the bank and existing standards or limits would not be affected.
Customers who have dollars in their accounts would not face any difficulties with money transfers either, the bank assured.
In February last year, BML scrapped dollar limits imposed during covid for customers who have dollar accounts as the primary account for their debit cards, setting a daily ATM withdrawal limit of USD 1,600 and a daily transaction limit of USD 3,000.
At the government's behest, the bank also continues to sell USD 500 per person for travelers heading out of the country.
Dollar shortage is a serious problem in the Maldives. Despite a de facto exchange rate of MVR 15.42, most people are forced to buy dollars from the black market, where prices range from MVR 16 to MVR 18 per dollar.
Economists and top bank officials have been saying for years that the dollar shortage cannot be alleviated without stopping the black market and enacting regulatory changes to ensure dollar deposits at the bank. But the problem has not been resolved to date.
