BML: Limits on platforms such as Temu increased with the USD generated from investments

Bank of Maldives (BML) has announced an increase in US dollar allocation for transactions on online shopping platforms such as Temu, following the inflow of foreign currency generated through its newly launched dollar investment scheme.

The investment opportunity, which allows customers to invest in US dollars and earn returns in Maldivian Rufiyaa, was launched last Tuesday. According to the bank, customers who invest US dollars receive the equivalent amount in Maldivian Rufiyaa immediately, while investment returns are credited to their accounts the following day.

At the launch of the scheme, BML’s Chief Executive Officer Mohamed Shareef stated that the additional foreign currency generated through the initiative would enable the bank to ease existing limits on Rufiyaa-denominated debit cards. The restrictions were introduced after demand for foreign currency exceeded the bank's available supply. In May, BML imposed daily spending caps on transactions made through popular online shopping platforms, including Temu and Shein.

Speaking on a program aired by PSM last night, BML’s Spokesperson Mohamed Saeed said the Bank had received numerous customer complaints regarding transaction limits on online shopping platforms. He noted that the foreign currency generated within the first 24 hours of the investment scheme had enabled the bank to increase the daily allocation beyond its previous limit.

"We have a daily limit established for these commonly used sites. As of yesterday, we have been able to expand this daily limit by increasing the funds allocated to that specific pool," Said explained. He added that customers had experienced a higher success rate for transactions on platforms such as Temu, Shein, and AliExpress compared with previous days.

Saeed said the dollar investment scheme benefits the bank, customers making online card transactions, and investors alike. He added that BML's decisions are guided by the interests of the Maldivian public and the national economy. While acknowledging that some decisions may not be welcomed by everyone, he said the bank carefully considers all relevant factors before implementing policy changes.

Reflecting on the history of card spending limits, Said noted that while various restrictions had been introduced over the years, the current limits were significantly revised in September 2020. He also highlighted the sharp increase in card usage over the past five years.

"Looking at online or e-commerce transactions and the needs of students living abroad, the demand has grown significantly. In 2021, we required approximately USD 10 million monthly for Rufiyaa-to-dollar conversions via cards. Today, that figure is approaching USD 40 million," Said remarked, noting a fourfold increase in foreign currency transactions compared with 2021.

President Dr. Mohamed Muizzu had previously stated, citing BML, that the bank would ease card spending limits before the end of last month.