Business owners have begun expressing serious concerns over a deepening dollar liquidity crisis at the Bank of Maldives (BML), alleging that the bank is obstructing the transfer of USD deposits to other financial institutions.
Information shared with Adhadhu by credible sources, supported by documentary evidence, reveals that USD transfers initiated as early as last week remain unprocessed. These pending requests include amounts ranging from $40,000 to $100,000.
The funds in question are being moved via the Maldives Real-Time Gross Settlement (MRTGS) system. Managed by the Maldives Monetary Authority (MMA), the system has a daily "cut-off" time of 12:00 pm on business days.
Traders noted that in the past, funds transferred before noon would be credited the same day. Transfers made after the cut-off would typically be settled the following business day or the next available working day after a weekend or holiday.
One businessman who spoke to Adhadhu said that when he contacted the bank to inquire why his funds had not been credited, BML informed him of an "MRTGS backlog." He expressed frustration that the bank could not provide a definitive timeline for when the backlog would be cleared.
"Beyond stating there is a backlog, they couldn't specify the volume or how many days it would take to resolve. This is a very critical situation," he said.
When asked why he sought to move funds from BML to another bank, the businessman explained that the main issue is the delay in processing Telegraphic Transfers (TTs), even when the account holds sufficient dollars. As an importer, he emphasized that he cannot afford delays caused by BML when he has long-standing orders and urgent payment obligations.
Another businessman echoed these sentiments, stating that a bank agent informed him last week that no dollar support was being provided for TTs. Citing the agent, he said the bank is currently prioritizing the clearance of a backlog for essential imports, such as medicine and food.
Dissatisfied with the delays, he inquired whether transferring his existing USD deposits to another bank would be faster, only to be told by BML that there is a backlog for such transfers as well.
"Right now, even if I move my money to MIB or SBI, there is no way to pay for my goods. This is unacceptable. I intend to empty all my accounts at BML," said the businessman, who has been a BML client for 31 years.
Despite efforts to obtain a comment from BML regarding these allegations, the bank had not responded by the time of publication.
BML has previously attributed the worsening dollar shortage to a decline in tourism linked to the conflict in Iran, which has reduced forex inflows at a time when public demand for dollars remains high. The bank cited these factors as the reason for delays in processing TTs.
In its first-quarter report for this year, BML warned that it might need to implement temporary measures as dollar outflows continue to outpace inflows.
The report, released in April, projected that economic conditions would cause a significant disparity between the bank's foreign currency receipts and expenditures. BML stated it would continue to manage foreign exchange transactions strictly.
The bank’s initial response to the liquidity crunch involved introducing controls on dollar support for businesses, alleging that the facility was being misused. This was followed by a collaboration with Maldives Immigration to verify the travel status of customers using Rufiyaa cards abroad, citing similar concerns of misuse.
BML then imposed daily spending limits on popular e-commerce platforms such as Temu and Shein, citing high transaction volumes on Rufiyaa cards. These limits were later expanded to cover all international online transactions.
The bank also attempted to attract foreign currency by launching investment schemes to purchase dollars at higher rates. During this period, it also introduced low-interest dollar loans and promotions to encourage customers to deposit salaries in USD.
Despite these measures, BML’s dollar liquidity crisis has only intensified, reaching a point where even existing USD deposits cannot be transferred to other banks.
