BML Reverses Decision to Suspend Foreign Transactions on MVR-Linked Cards

The initial changes, announced on Sunday morning, involved suspending foreign transactions for existing debit cards and new debit and credit cards linked to MVR accounts, while also lowering the monthly limit for standard and gold credit cards to USD 100.

However, by the afternoon, BML issued a second statement retracting the decision, citing instructions from the Maldives Monetary Authority (MMA). The reversal came after widespread criticism, particularly from Maldivian students studying abroad, who were severely impacted by the initial changes.

In its earlier statement, BML explained that the move was necessary due to an imbalance between the high usage of foreign currency on cards and the lower amount of foreign currency the bank could purchase. BML’s CEO and Managing Director, Karl Stumke, highlighted that while the bank acquired approximately USD 60 million in foreign currency this year, card usage was three times higher, affecting the bank’s ability to support business customers with foreign currency needs.

Karl emphasized the importance of balancing foreign currency allocation, particularly to ensure support for essential economic activities, and acknowledged that the changes would significantly impact customers. He described the decision as temporary and necessary to protect depositors and the bank’s economic role.

Following the reversal, the foreign transaction limit on debit and credit cards returned to USD 250 per month, with a higher limit of USD 750 for Maldivians residing overseas. This limit had been in place due to a USD shortage exacerbated by the economic downturn during the COVID-19 pandemic.

The decision to adjust card limits comes shortly after changes to BML’s board, including the dismissal of the bank’s Deputy CEO, Aishath Nooraddin, who had served for over 42 years. The board also saw the dismissal and later reappointment of some non-executive members.

The bank's announcement had an immediate impact on the black market dollar rate, which surged from MVR 18.30 in the morning to over MVR 19 following the initial decision.