The Monetary Authority of Maldives (MMA) has said that it will give priority to banks that take into account matters related to the people when determining the ratio of dollars issued to banks in the future.
In a statement, the central bank said the authority has been increasing the amount of dollars issued to banks year by year. The MMA disbursed USD 267 million to banks in 2022 and USD 307 million last year.
"At the same time, the number has been increased this year. The majority of these have been allocated to BML [Bank of Maldives]. In addition to the Bank of Maldives, several other banks are also offering dollar transactions with Rufiyaa debit cards," the statement read.
"In the future, the MMA will give priority to banks that take into account such issues related to the people in determining the dollar ratio."
The MMA said the change in dollar limits brought by the BML was not a positive change for the people and businesses and that BML was instructed to change its decision for that reason.
BML has faced challenges in managing card transactions but is in a very good financial position, the statement said.
The MMA said the printing of money to manage the government's cash flow after the Covid-19 pandemic has increased the surplus liquidity in the banking system. At the end of July, the banking system had an average surplus of MVR 6.7 billion.
"BML accounts for the bulk of this. Most of the surplus liquidity has been disbursed by banks in the form of personal loans. The amount of personal loans disbursed by the banking system stood at MVR 2.9 billion at the end of 2019."
The MMA issued a statement after BML reversed a decision to block dollar transactions with Rufiyaa cards and reduce the limit of previously issued credit cards to USD 100.
