BML extends dollar sales for TTs as MMA boosts FX allocation for three weeks

Bank of Maldives (BML) has extended the sale of US dollars for telegraphic transfers (TTs) for three weeks following an increase in foreign exchange allocations by the Maldives Monetary Authority (MMA).

The central bank recently raised the amount of dollars issued to commercial banks for three weeks to ease foreign currency shortages. However, BML did not specify the percentage increase in its dollar allocations for TTs.

From January to July this year, BML disbursed more than USD 186 million to customers for TTs, an average of USD 27 million per month, marking an increase of USD 12 million compared to the monthly average last year. Over the past seven months, the bank has provided approximately USD 570 million for various customer needs, averaging USD 2.7 million per day.

BML assured that it will continue to provide foreign exchange for the needs of individuals and businesses.

The MMA said its decision to increase dollar allocations by 51 percent for three weeks will help businesses access funds needed for imports. The authority noted that the measure will particularly ease difficulties faced by small and medium enterprises in obtaining dollars for TTs and letters of credit (LCs).

The MMA has previously taken similar steps to address foreign exchange shortages, including a 32 percent increase in allocations during Ramadan to support essential food imports and a 26 percent increase in June to assist businesses during the tourism off-season.