The Bank of Maldives (BML) has suspended foreign transactions through debit cards.
In a statement issued on Sunday, the country’s national bank announced the changes to its card limits for foreign transactions, revealing that the changes are effective immediately.
BML revealed that the changes are in response to the increasing use of foreign currency on cards and the static scale of foreign currency to BML.
According to the bank, the allowance for foreign transactions for existing debit cards linked to Maldivian Rufiya accounts has been suspended.
Further, allowances for foreign transactions for new debit and credit cards linked to MVR accounts have also been suspended.
In addition to this, BML revealed that the monthly limit for foreign transactions on existing standard and gold credit cards has been limited to USD 100.
CEO and Managing Director of BML, Karl Stumke revealed that BML has been monitoring card usage over the past year and reiterated that BML can only sell what it has been able to purchase, in multiple speeches and interviews.
This year we have purchased approximately USD 60 million in foreign currency from our customers, but card usage is threefold higher than that. The card usage impacts our ability to provide foreign currency support to our business customers and we have this anomaly where the Bank provides 75% less foreign currency to the economic sector than we do for discretionary spend on cards dominated by travel and online shopping. We have to get the mix correct and ensure we are not squandering a scarce resource.”Karl Stumke, BML’s CEO and MD.
Noting that the bank has an obligation to protect depositors, Stumke stressed that they cannot continue to sell more than the amount they are able to purchase.
Stating that Customers using their USD credit cards and debit cards linked to USD accounts will not be affected, Stumke said that they can use up to the available account balance.
Further, he said that customers that have recurring international payments are recommended to have USD accounts as their debit cards’ primary account to process overseas purchases.
Opening an account with us is simple - in just a few simple steps, customers can open a USD account instantly on Internet or Mobile Banking, without having to visit a branch.”Karl Stumke, BML’s CEO and MD.
Stressing that the bank understands that the changes will have a significant impact on customers, Stumke stated that these changes are not expected to be permanent and that BML would review this from time to time and keep their customers informed on any changes.
Stumke stated that the decision was not taken lightly, however, they were forced to take this measure to ensure they are able to continuously provide the necessary support for essential economic activities.
