Bangladesh seeks to open bank branches in Maldives to facilitate workers' remittances

Bangladesh Bank, the central bank of Bangladesh, has initiated discussions with Maldivian authorities over plans to establish branches of Bangladeshi banks in the Maldives to address difficulties faced by migrant workers in sending money home.

According to Bangladesh's state news agency, Bangladesh Sangbad Sangstha (BSS), Bangladesh Bank Governor Ahsan H Mansur sent a formal letter to Maldives Monetary Authority (MMA) Governor Ahmed Munawar on 8 October seeking cooperation on the proposal.

A senior Bangladesh Bank official told BSS that the initiative was intended to improve access to formal remittance services for Bangladeshi workers employed in the Maldives.

"We are working to open branches of Bangladeshi banks in the Maldives to facilitate remittances through formal channels. We are now awaiting a response from the MMA," the official said.

The official said Bangladesh Bank had also recently held an online meeting with the Bangladesh High Commission in the Maldives to discuss the proposal.

Feasibility studies have been completed on the possibility of establishing branches of Bangladeshi private banks, including BRAC Bank and National Bank, in the Maldives.

The official noted that banks from India, Sri Lanka and Pakistan already operate in the Maldives and argued that Bangladeshi banks should also be given an opportunity to establish a presence in the country.

The initiative follows a decline in remittances sent from the Maldives to Bangladesh through formal banking channels.

Bangladesh Bank has proposed three measures to improve access to remittance services and facilitate financial transactions between the two countries.

The first proposal involves using the Asian Clearing Union (ACU) to enable Bangladeshi workers to send money in Maldivian rufiyaa, with recipients in Bangladesh receiving the equivalent amount in Bangladeshi taka.

The second proposal seeks to establish a system allowing Bangladeshi nationals travelling to the Maldives to make payments in rufiyaa through cards linked to taka accounts, using Maldivian banks and money transfer operators.

The third proposal involves establishing a bilateral currency swap arrangement between the central banks of Bangladesh and the Maldives to facilitate transactions and remittance transfers.

According to BSS, Bangladesh Bank introduced the proposals in response to a decline in remittance inflows from the Maldives.

Official figures show that remittances from the Maldives to Bangladesh declined from USD 141.1 million in the 2024–2025 financial year to USD 118 million in 2025–2026, representing a decrease of 16.4%.

Remittances during a three-month period this year totalled USD 38.05 million, according to the figures cited in the report.

More than 200,000 foreign nationals are employed in the Maldives, including over 100,000 Bangladeshi citizens.

However, Bangladeshi workers face difficulties transferring their earnings through formal banking channels because banks and money transfer agencies are reluctant to accept Maldivian rufiyaa directly.

As a result, workers often purchase US dollars through the parallel foreign exchange market at higher rates before sending money to Bangladesh.

The cost of transferring money through formal channels has also led some workers to use informal remittance systems, including hundi, to send their earnings home.

Bangladesh Bank said the proposed arrangements would be subject to the MMA's response and the laws and regulations of both countries.

The central bank also expressed its readiness to send a delegation, including representatives from Bangladesh Bank and the Bangladesh High Commission, to hold technical discussions with the MMA on implementing the proposals.

The discussions are intended to improve access to banking services for Bangladeshi workers in the Maldives and increase the volume of remittances transferred through regulated financial institutions.