The Bank of Maldives (BML) has reversed a decision to block dollar transactions with Rufiyaa cards and reduce the limit of previously issued credit cards to USD 100.

"Changes to card limits for foreign transactions announced on 25th August 2024 has been reversed based on instruction from our regulator, the Maldives Monetary Authority," the national bank said in a short notice.

Earlier on Sunday, the bank said the decision was made "in response to the escalating usage of foreign currency spent on cards and the static sale of foreign currency to the bank."

The changes announced were:

• Existing debit cards: Suspension of allowance for foreign transactions for cards linked to MVR accounts.
• New debit and credit cards: Suspension of allowance for foreign transactions for cards linked to MVR accounts.
• Existing Standard and Gold credit cards: Monthly limit for foreign transactions reduced to USD 100.

However, BML later announced that the decision had been reversed based on instructions from the central bank MMA.

BML CEO and Managing Director Karl Stumke has previously said that "difficult decisions" could be made as the amount of dollars available to buy is less than the amount sold.

The decision sparked concern as Maldivian students studying abroad and those seeking medical treatment overseas faced sudden difficulties.

Moreover, activists and supporters of the government accused the national bank of making the decision without consulting government officials.

The President's Office also summoned Stumke and MMA Governor Ahmed Munawar to an emergency meeting.

Adhadhu understands that the decision was reversed after MMA assured the bank that it would provide dollars as needed.

Meanwhile, the opposition Maldivian Democratic Party (MDP) today accused the government of trying to influence BML.

Former Finance Minister Ibrahim Ameer warned that credit rating agencies such as Fitch and Moody's are likely to downgrade Maldives' credit ranking as a result of government actions.