BML ready to expand dollar issuance, Shareef says
He noted that the government had extended support through policies aimed at strengthening the bank’s foreign exchange position.
The Bank of Maldives (BML) is now in a position to increase the amount of dollars issued to the public for various purposes, Chief Executive Officer and Managing Director Mohamed Shareef said on Wednesday.
Speaking at a ceremony held at the Barcelo Nasandura Hotel, Shareef said the bank’s challenges in obtaining foreign exchange had been resolved with the assistance of the government.
He noted that the government had extended support through policies aimed at strengthening the bank’s foreign exchange position. Following this, the President announced that dollar transactions using debit cards abroad would be increased from 11 November.
Shareef said the biggest economic challenge facing the Maldives was the shortage of dollars, and that BML provides the widest range of cross-border payment services in the country.
Citing the bank’s 2023 annual report, Shareef stated that between 2019 and 2023, BML sold USD 333 million more than it was able to purchase.
“This pressure peaked in late 2020. The bank’s dollar exchange position fell well below normal and did not recover sufficiently over the next four years. When I took over the bank in October 2024, it had fallen to 20 percent,” he said.
He explained that the situation had reached a point where the sale of dollars in all forms might have had to be suspended, which would not have been sustainable given the needs of customers and the requirements of traders for telegraphic transfers and letters of credit.
According to Shareef, the bank’s board made significant efforts to address the problem, and the Ministry of Finance prioritised the issue and provided assistance.
“Now, the bank has overcome this five-year challenge and brought the net open position from a negative to a positive range,” he said. “The bank is now in a position to increase the amount of dollars issued for various purposes.”
Shareef added that BML’s performance is closely linked to the Maldivian economy. The bank, he said, is affected by economic shocks but also grows alongside the economy.
Comparing the country’s GDP growth from 2019 to 2024 with BML’s performance, Shareef said the bank’s assets represent 38 percent of the Maldives’ GDP, making it not only a financial institution but also a key component of the national economy.
