Bank of Maldives (BML) has decided to increase the amount of US Dollars released for Telegraphic Transfers (TTs) for a three-week period, amid a severe dollar shortage that has driven black market rates to record highs.
BML announced last night that the decision follows a move by the central bank, Maldives Monetary Authority (MMA), to increase foreign currency allocations to commercial banks for the next three weeks.
"Taking into account the amount of dollars received by Bank of Maldives and the volume of Telegraphic Transfer (TT) requests submitted by customers, the bank has decided to increase the dollar supply for TTs for a period of three weeks," BML stated in its press release.
However, the bank did not disclose the amount by which the dollar support would be increased.
BML noted that between January and July of this year, it had released over USD 186 million to customers for TTs. This averages to USD 27 million per month, which the bank highlighted is a USD 12 million increase compared to the monthly average of the previous year.
In addition to TTs, the statement noted that the bank has provided approximately USD 570 million for various customer needs over the past seven months.
The MMA decided yesterday to increase the weekly US Dollar allocation to banks by 51 percent to alleviate the current shortage. The central bank stated that this change aims to facilitate easier access to foreign currency through the formal banking system and provide relief to the foreign exchange market.
The MMA’s intervention comes at a time when the dollar shortage has caused the Maldivian Rufiyaa to depreciate to historic lows. While the official exchange rate remains pegged at MVR 15.42, the black market rate for the US Dollar is currently hovering around MVR 22.25.
