The Bank of Maldives (BML) has started taking money from its USD fixed deposit accounts due to a severe dollar shortage crisis.
Adhadhu understands that this is the first time this is being done in the national bank's long history.
BML started taking dollars from fixed deposit accounts because the bank was not getting the money it needed to provide dollar support for the Rufiyaa accounts.
BML could not be reached for comment.
Fixed deposit accounts are kept in the bank for a certain period of time to earn interest. Money can be kept in BML fixed deposit accounts for six and 12 months. Interest rates depend on the amount of money in the account.
In certain cases, money can be withdrawn from fixed deposit accounts. However, this gives the bank the right to deduct the interest. Customers' permission is sought before taking funds from fixed deposit accounts as the customer has the right to withdraw funds before maturity.
BML decided on August 25 to suspend dollar transactions with its Rufiyaa accounts and reduced the limit of credit cards to USD 100.
However, the government ordered the decision to be reversed, describing it as a coup attempt by BML in collaboration with the opposition. Police are investigating the alleged financial coup.
