Reserves depleted; Government forcing banks to use customer deposits for debt repayment: Nasheed
21 ސެޕްޓެމްބަރު 2026 | ހޯމަ 08:45Former President Mohamed Nasheed has expressed grave concern over allegations that the government is pressuring the Bank of Maldives (BML) to utilize customer deposits to settle the nation's foreign debt. Criticizing the current policy of mandatory foreign currency conversion for resorts as an unsustainable strategy, Nasheed called upon auditing firms to conduct a transparent review and disclose the bank’s true financial standing.
MDP Chairperson and former President Mohamed Nasheed. | raajjemv
The Chairperson of the MDP and former President, Mohamed Nasheed, has stated that the Maldives' official reserves have run out of usable foreign currency. He further alleged that the government is pressuring the Bank of Maldives (BML) to utilize public deposits to settle the state's outstanding debts.
President Nasheed made these remarks in a post on X, expressing his concerns regarding the current state of the Maldivian economy.
According to President Nasheed, $50 million in bilateral debt remains unpaid. He stated that the government is pressuring banks to use customer deposits to settle these debts, which has resulted in significant difficulties for customers attempting to withdraw their funds.
Nasheed stated that although the bank claims customer transactions will return to normal within the coming week, this outcome remains entirely dependent on the government's new policy. He explained that the plan relies on securing $160 million by mandating resorts to convert 40 percent of their foreign currency earnings into Maldivian Rufiyaa—a move he criticized as an unsound financial strategy. Furthermore, he noted that the plan is built on nothing more than unrealistic expectations.
Furthermore, President Nasheed called upon international audit firms operating in the Maldives to transparently disclose the financial accounts and the true condition of the Bank of Maldives (BML) without any misrepresentation, noting that it is a public bank involving the interests of general shareholders. He stated that it is the responsibility of these audit firms to make such information public without any concealment.
As the Maldives' foreign exchange reserves plummet to historic lows, economic experts and opposition figures are intensifying their criticism of the government's fiscal policies. Concerns are mounting that the nation's financial system faces a significant loss of confidence, driven primarily by the escalating challenges in meeting external debt obligations.
