Several businesses have reported that the Bank of Maldives (BML) has abruptly suspended the US dollar support previously provided for Telegraphic Transfers (TTs).
Prominent local companies informed Adhadhu that the bank has notified them of the suspension of dollar support until the end of this month. This has presented a significant challenge for importing companies.
"This is a massive loss. We are now forced to source 100 percent of the dollars required for imports ourselves [from the black market]," a director of one of the country’s largest importing firms stated.
An executive from another company noted that while BML informed them that dollar support for TTs could no longer be provided, the bank did not specify a reason for the decision.
BML has not yet issued an official comment on the matter.
The reports of suspended dollar support come after the government paid USD 524 million earlier this month to settle a sukuk. It has also been reported that BML decided to fund MVR 4 billion worth of government projects, with some payments disbursed in US dollars.
The scarcity of dollars from the bank has forced traders to purchase currency from the black market at rates exceeding MVR 20 per dollar. As a result, the prices of goods in the market have begun to rise sharply.
Three weeks ago, following reports that some traders and importers were facing difficulties in processing TTs to foreign entities, BML denied the claims and warned of legal action against those spreading such information.
At the time, BML spokesperson Mohamed Saeed stated that the bank would pursue lawsuits for damages against parties disseminating false information regarding the institution.
