BML says it may introduce temporary adjustments to foreign currency sales if overseas inflows continue to decline

The Bank of Maldives (BML) has said foreign exchange receipts from credit and debit card transactions have declined due to the war in the Middle East.

In a press release on its first‑quarter financial results, BML said tourist bookings have been cancelled since February 28 because of the conflict. As a result, foreign exchange inflows from card transactions have fallen by nearly one‑third so far this month, the bank said.

At the same time, foreign currency outflows for imports of goods and foreign services have doubled. According to the bank, this means the amount of money sent abroad will be significantly higher than the amount received from overseas during this period.

The bank said that despite these challenges, it continues to manage foreign exchange liquidity and support the market. In the first 15 days of this month alone, the bank sold more than USD 25 million for the import of food, essential commodities and other commercial needs.  

This is higher than the first‑quarter average and more than double the amount sold during the same period last year.

In addition, foreign currency sold for credit and debit card transactions has also increased significantly, with USD 22 million facilitated in the first 15 days of April.

“Should the deficit in overseas inflows increase, the Bank will continuously seek to provide foreign currency assistance for the essential needs of businesses and the general public, except for a temporary measure that may be required for proportionately equivalent foreign currency sales,” Bank of Maldives said.

The war in the Middle East has caused changes in the global market, leading to rising commodity prices. Maldives is heavily dependent on imports, and both businesses and individuals require dollars.

Finance Minister Moosa Zameer said on Sunday that the Central Bank, MMA, and BML have jointly arranged measures to facilitate access to foreign exchange to strengthen the economy.

The minister said the government is doing what it can through BML to prevent the economy from stagnating.