BML forced to limit USD sales to students studying abroad as dollar shortage worsens

The Bank of Maldives (BML) has notified changes in the amount of United States Dollars (USD) sold to Maldivians studying abroad.

On Wednesday, the Bank of Maldives (BML) sent an email to overseas students, announcing a significant adjustment. Instead of the current practice of selling USD 1,000 per student for covering living expenses during their studies abroad, BML will now align the amount with the stipend fixed by the Higher Education Ministry. This change takes effect starting Sunday.

The implications of this change are substantial. If the stipend corresponds to the Ministry of Higher Education’s rate, students from many countries will receive considerably less than the previously allocated USD 1,000. 

The amount of stipends allocated by the Ministry of Higher Education varies from country to country. They are usually:

BML confirmed to Atoll Times that such an email was indeed sent.

The bank said it has already sold USD 333 million more than the amount of dollars it received from customers and the MMA. The bank also said that selling dollars the bank doesn’t actually possess won’t be sustainable.

BML CEO Karl Stumke has recently said that the bank may be forced to make difficult decisions to reduce its financial situation and exposure to risks until the bank's dollar supply increases.

Although there has been a change in the amount of dollars given to students, the bank has not changed the dollar assistance it already provides to students through TT to pay university course fees and tuition fees.

The dollar has risen to MVR 18 in the black market as the off-season for tourism coincided with the school holidays and Hajj season.