Bank of Maldives Disburses Nearly USD 2 Billion to Tackle Dollar Shortage

The Bank of Maldives (BML) has disbursed nearly USD 2 billion over the last 30 months to address the country's growing demand for foreign exchange, Minister of Economic Development, Transport and Trade Mohamed Saeed revealed. Speaking at the "Ahaa" public forum, Minister Saeed detailed the government's strategic efforts to combat the ongoing US dollar shortage. He noted a significant surge in official dollar allocations, highlighting that the Maldives' reliance on the currency has escalated dramatically. Of the USD 3 billion released at the official rate between 2021 and the 2026 forecast, approximately USD 2 billion was distributed in the last 30 months alone—a 63 percent increase in issuance for Telegraphic Transfers (TTs) and general requirements. Trade-related dollar volumes have seen a sharp upward trend. In 2022, BML released USD 130 million for TTs at the official rate. While this figure dipped slightly to USD 122 million in 2023, it has surged to USD 213 million so far in 2026. Monthly allocations for TTs have jumped from an average of USD 10 million to USD 27 million. Similarly, card transactions rose from USD 161 million in 2022 to USD 304 million this year. To stabilize the market, the Maldives Monetary Authority (MMA) recently amended regulations, increasing the mandatory foreign exchange surrender requirement for tourism businesses from 20 percent to 40 percent. Minister Saeed stated that the full impact of this policy will be evident starting the 25th of this month, noting that earlier requirements have already yielded positive market indicators. Despite the focus on commercial trade, the Minister emphasized that the government continues to prioritize citizens. BML maintains the provision of dollars at the official rate for essential needs, including medical treatment overseas, students studying abroad, and Hajj and Umrah pilgrims. Closing his remarks, Minister Saeed highlighted the administration's fiscal discipline, noting the settlement of USD 1.4 billion in debt—the largest repayment in the nation's history. He affirmed that the Ministry is working in close collaboration with the MMA to ensure long-term stability in the country’s foreign exchange reserves.