Card limit hike in doubt over dollar shortage

The governments decision to increase the monthly limit of Bank of Maldives (BML) debit and credit cards to USD 1,200 from next month is in doubt after reported dollar shortages in local banks.

Currently, Maldivian students abroad can withdraw USD 750 per month through their BML cards.

However, the cabinet last month decided to allow Maldivian students studying abroad to transact up to USD1,200 from next month.

When asked by Atoll Times whether the cabinet's decision could be implemented, the country's main bank BML said in a message shared on Thursday that discussions with the finance ministry on increasing the dollar transaction limit were still ongoing.

"The amount of dollars required to accommodate this change, the scale of the change and the establishment of a system to increase the limit are being discussed," the message said.

The bank said customers can be given dollar access based on the amount of foreign currency available to the bank.

"There will be no change in the number of dollar withdrawals from accounts due to the change in the dollar limit on cards," it said.

Increasing card limits abroad is a campaign pledge of President Dr. Mohammed Muizzu.

BML has recently said that it has been unable to sell dollars for some international transfers (TTs) due to a shortage of dollars.