Bank of Maldives Defends USD Investment Product Against Black Market Concerns

The Bank of Maldives (BML) has dismissed allegations that its newly introduced USD investment product is fueling the foreign currency black market, asserting that the facility operates within the bounds of national financial regulations. The "investment pool" allows customers to deposit US dollars and earn returns of up to 25 percent by the following day. BML maintains that the product is conducted in full compliance with banking laws and the guidelines set by the Maldives Monetary Authority (MMA). Under the mechanism, customer deposits are pooled during banking hours and utilized specifically to finance e-commerce transactions. To generate the returns paid to investors, BML charges a 30 percent fee on these platform trades, deducting 5 percent for administrative costs before distributing the remainder to the pool's participants. The bank clarified that the product is a targeted response to existing e-commerce demand and is restricted to a specific allocated budget, rather than an open-ended currency tool. This structure is intended to provide liquidity for digital trade without disrupting the broader economy. Abdulla Hassan, BML's Director of Financial Strategy and Planning, told PSM News that the pool is unlikely to alter the aggregate supply or demand for US dollars in the Maldives. He further noted that the bank does not expect the product to impact the prevailing black-market exchange rates. "Even if the market equilibrium is MVR 20, aggregate dollar demand and supply will hardly change," Hassan stated, suggesting that the scale of the pool is too small to shift national currency trends. As a publicly listed institution, BML emphasized that all transactions associated with the investment pool are carried out in strict adherence to the rules established by the Capital Market Development Authority (CMDA).