Finance Ministry says dollar withdrawal limit cannot be increased

Feb 1, 2024, 5:07 AM
Finance Ministry says dollar withdrawal limit cannot be increased

The Finance Ministry has revealed that the dollar withdrawal limit for overseas students cannot be increased on February 1 to USD 1200 as decided by the government.

Adhadhu has previously reported that the government cannot raise the monthly dollar withdrawal limit for overseas students due to the dollar shortage crisis.

In a statement issued yesterday, the Finance Ministry said the Bank of Maldives (BML), Maldives Monetary Authority (MMA) and the Higher Education Ministry are working to develop a system to implement the policy.

"We have identified challenges to implementing this policy currently and are working to determine the demand and difficulties in getting dollars," the statement read.

The Finance Ministry added that a complete register of overseas students is also being compiled as part of the process of increasing the dollar withdrawal limit.

It added that the ministry is further working with the MMA and banks to increase official reserves and the proportion of dollars exchanged through the banking system.

The statement did not specify a date for the policy to be implemented.

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.

BML is now unable to provide funds for TTs due to the dollar shortage, according to some businesses that spoke to Adhadhu.

Meanwhile, the bank's chairman and some board members have been removed and some of the members were reappointed to the board.

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