Rising e‑commerce demand strains dollar supply; BML ties card limits to availability

The limits on MVR cards will be relaxed as dollars become available for purchase, and the Bank of Maldives (BML) has launched a new opportunity for customers to invest dollars and earn returns of up to 25 percent in Rufiyaa for that purpose, CEO Mohamed Shareef said Tuesday.

Speaking at an event titled ‘Chat with CEO’, Shareef highlighted key statistics on foreign transactions made using MVR cards.

According to the figures, USD 10.7 million was spent using MVR cards in 2021, compared to USD 39.3 million this year, a 267 percent increase. In addition, between 250,000 and 300,000 customers make foreign transactions with BML cards every month.

Statistics also show that in 2021, customers spent an average of USD 95 a month. This year, that figure has increased to USD 143.

Shareef said the bank can only sell dollars to the extent that it earns and acquires dollars.

“Now this volume has increased so much that it has grown many times beyond what the bank can afford to buy. In the last 36 months, the Bank has sold USD 1.6 billion for general consumption and card consumption,” he said.

Of that amount, 65 percent was sold for card transactions, he added.

Shareef said the bank was forced to limit the budgets of some websites because dollar outflows were exceeding the bank’s ability to purchase foreign currency. He noted that many customers faced difficulties as a result.

“We also increased the fees charged for some websites to 30 percent, which was meant as a discouragement. However, people still want to be able to conduct these transactions,” he said.

He assured that dollars will continue to be released for essential needs such as education and medical appointments.

“We don’t want to block other retail e-commerce sites, so we want to involve others,” he said.

Shareef said card transactions remain one of the bank’s most profitable business lines.

According to information shared with reporters at the ‘Chat with CEO’ session, BML has upgraded its mobile app and internet banking to allow customers to invest dollars online. The bank will provide daily information on investment pools offering different rates of return.

BML said that upon investing dollars, the equivalent amount in MVR will be immediately credited to the investor’s account, while the profit will be credited the following day.

The investments are offered through pools with varying rates of return, with returns of up to 25 percent.