The limit set for foreign transactions using cards cannot be increased unless more dollars are available for purchase, the Bank of Maldives (BML), the bank used by most Maldivians, has said.

Regarding the rise in the price of dollars in the Maldives market and increasing the limit for transactions conducted overseas, BML said the bank could not comment on the dollar shortage in the country, but added that the bank has been selling in excess of the amount of dollars available for purchase in the market.

Speaking at BML’s annual general meeting on May 28, CEO Karl Stumke said the bank has sold USD 333 million in excess of what it was able to buy from customers and the Maldives Monetary Authority (MMA).

"As long as the amount of dollars available for purchase by the bank does not increase, raising the limit determined for foreign transactions using cards is not something that BML can do," BML's Head of Public Relations Mohamed Saeed said today.

Saeed said discussions on increasing the amount of dollars available for purchase by the bank were underway with the relevant authorities.

BML's annual report highlighted that the bank must make difficult decisions to reduce exposure to risks and improve its financial situation while it is not sustainable to continue selling something that is not available for the bank to buy.

The current limit for transactions with BML debit cards in other countries is USD 250 per month. The limit for credit cards is USD 750 per month.

In December, the government pledged to raise the dollar withdrawal limit for Maldivian students overseas to USD 1,200 but failed to do so. Scrapping the dollar limits imposed by banks was a campaign pledge of President Dr. Mohamed Muizzu.