BML CEO says new investment product aims to ease dollar shortage

Bank of Maldives (BML) Chief Executive Officer and Managing Director Mohamed Shareef has said the bank's new dollar investment product is part of its efforts to address the shortage of foreign currency and support the long-term availability of US dollars.

Speaking at BML's "Chat with CEO" event on Tuesday, Shareef said the service was designed to provide an additional source of foreign currency while offering customers an opportunity to earn returns on their dollar investments.

The bank launched the investment product earlier on Tuesday, allowing customers to invest US dollars and receive returns of up to 25 per cent.

Shareef said foreign currency spending through BML-issued rufiyaa debit and credit cards has increased significantly over the past five years.

According to the bank:

Shareef said the volume of foreign currency leaving the bank currently exceeds the amount of dollars it receives, leading to limits on foreign currency transactions made with rufiyaa cards.

He said BML has introduced transaction limits and charges of up to 30 per cent on purchases from selected online platforms to manage demand, but noted that customers ultimately want reliable access to foreign currency services.

"The product we are introducing today is aimed at finding parties who will invest those dollars, especially at a time when we have to purchase dollars to pay external parties on foreign networks," Shareef said.

He said the bank hopes to encourage individuals and businesses to invest their foreign currency through BML rather than other channels.

"We want our customers to partner with us, and through that, expand and advance these transactions," he said.

"That is how the lending mechanism works as well. Our customers partner with us, maintain their deposits here, and we use that to expand our loan services. The hope is that this initiative expands into a business that functions in the exact same manner."

Shareef said similar investment products are offered by banks in other countries and added that BML's foreign exchange investment service would operate in accordance with governance and risk management standards.

"We hope these initiatives will be something customers trust, moving forward alongside the trust they place in the bank," he said.

"I believe that with the trust of our customers, this will become a product that benefits the entire community."