Bank of Maldives (BML) has notified its business customers that dollar support for Telegraphic Transfers (TTs) has become increasingly restricted over the past week.
Importers have been warned that any TT request will be automatically cancelled without further notice if the customer's account does not hold the full invoice amount in dollars.
BML has implemented a pop-up notification on its online portal to inform customers of this change when they attempt to initiate transfers.
According to the message, the provision of foreign exchange (FX) support is strictly subject to availability. The bank clarified that while TTs will be processed if the required dollars are available in the account, any application lacking sufficient funds will be voided immediately.
Speaking to Adhadhu on condition of anonymity to protect their banking relationship, one businessman shared that a TT he initiated on Wednesday was rejected the following day. With the weekend approaching, the delay meant he was unable to purchase the remaining dollars in time to load his cargo before the supplier’s weekend closure.
The businessman explained that his account lacked the necessary funds because the bank had previously deducted a large sum from his dollar account for an earlier TT without informing him that FX support was unavailable.
That transfer was intended for a Chinese company. The merchant noted that TTs settled in Chinese Yuan typically receive between 30 to 50 percent FX support from the bank. However, on this occasion, the bank deducted the entire amount from his dollar account.
"It is very disappointing; they should inform us before deducting such a large amount. They need to be clear about whether support is available or not. It is incredibly difficult to manage during such a severe dollar shortage," he said.
All businesses that spoke with Adhadhu regarding BML’s current foreign exchange situation reported that they received no dollar support for any TTs sent last week.
"The only information provided is that there is a massive backlog. We were advised that it is best to only initiate TTs if we have the full amount in dollars. They said they cannot even give a timeframe for when a request for dollar support might be answered," another businessman said.
While the exact size of the backlog and the date it began remain unclear, merchants have been raising these concerns for some time. Complaints have also mounted over the fact that the current level of dollar support falls short of the quotas previously pledged by the government for businesses.
