Bank of Maldives Warns Misinformation Could Trigger Severe Economic Instability

The Bank of Maldives (BML) has warned that attempts to undermine public confidence in the nation’s financial system could lead to severe and irreversible damage to the Maldivian economy. Speaking at the "Two Sides of the Economy" panel discussion hosted by the Ministry of Economic Development, Transport and Trade, BML’s Head of Brand and Marketing Strategy, Mohamed Saeed, cautioned that misinformation regarding financial institutions creates unnecessary public anxiety. He emphasized that such narratives jeopardize critical relationships with international banks, which are vital for the country's financial stability. Saeed warned that the collapse of even a single foreign banking partnership could spark a localized crisis. Such a breakdown would directly impact ordinary citizens, making it significantly harder for Maldivians to transfer funds abroad or for students and expatriates to use their bank cards internationally. To provide context on the current economic pressures, Saeed shared data showing a massive surge in foreign currency demand. In 2023, BML sold an average of USD 40 million per month to individuals and businesses; by 2026, this figure more than doubled to over USD 81 million monthly. In the first half of this year alone, the bank facilitated USD 570 million in sales, averaging USD 2.7 million daily. Despite these pressures, the bank continues to prioritize healthcare and education. While student allocations remain stable, funds for medical travel have tripled from USD 1 million per month last year to USD 3 million in 2026. The bank also noted a spike in US dollar ATM withdrawals, which reached USD 188 million last month. Customer behavior has also shifted toward local currency solutions. The number of customers using MVR cards for international travel and online shopping has grown from 90,000 pre-pandemic to nearly 300,000 today. Saeed acknowledged the challenges associated with this growth but expressed confidence that BML would expand limits through ongoing efforts. Underscoring the bank's systemic importance, Saeed noted a 0.96 correlation between BML’s financial health and the national economy. Between January and July 2026, the bank issued MVR 8.9 billion (USD 577.2 million) in new loans, with approximately USD 270 million provided in US dollars to support national development.