BML launches dollar investment pools offering returns of up to 25% in Rufiyaa
The investment feature is available through BML's Mobile Banking App and Internet Banking platform.
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Bank of Maldives (BML) has launched a new investment product that allows customers to invest US dollars and earn returns of up to 25 per cent, with profits paid in Maldivian rufiyaa (MVR).
The bank announced the launch on Tuesday, stating that funds raised through the investment pools will be used to support its foreign currency operations. A portion of the revenue generated from these activities will be distributed to investors.
The investment feature is available through BML's Mobile Banking App and Internet Banking platform. Customers can view available investment pools, which are offered daily with different return rates, and complete transactions online.
According to the bank:
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The equivalent value of the invested US dollars will be credited to the customer's MVR account immediately.
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Investment returns will be paid into the customer's MVR account the following day.
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Multiple investment pools will be available, with returns of up to 25 per cent.
Speaking at the launch event held at Hotel Jen, BML Chief Executive Officer and Managing Director Mohamed Shareef said the bank's monthly sales of US dollars for overseas debit and credit card transactions had increased 3.7 times over the past five years.
He said the bank now sells an average of USD 39.3 million each month for such transactions, while between 250,000 and 300,000 customers use MVR cards for international payments every month.
Shareef attributed the increase largely to the growth of cross-border online shopping by Maldivians.
"This is clear evidence of how rapidly the Maldives is embracing digital innovation. Rapid advancements in digital payment gateways, the expansion of global online marketplaces, and significant leaps in telecommunications and logistics infrastructure have made cross-border shopping easier and more affordable than ever before," he said.
According to Shareef, while the bank's card business generates revenue, maintaining the current level of foreign currency sales through existing inflows alone is not sustainable.
He said the new investment product was designed to create a sustainable source of dollar liquidity while avoiding restrictions on services used by customers.
"We want to deliver this service sustainably. Therefore, we have established a framework that creates a system for dollar investors, card users and the bank alike," he said.
Shareef explained that dollars invested through the new pools would be used to support e-commerce transactions and other foreign currency services that generate fee income. After deducting operational costs, the bank will distribute a share of that income to investors.
He said the arrangement would also support the bank's ability to meet customer demand for foreign currency, including card payments, e-commerce transactions and imports.
