Bank of Maldives Restricts Foreign Transactions on Debit and Credit Cards

The Bank of Maldives has announced immediate changes to its card limits for foreign transactions, responding to the growing demand for foreign currency and the static sale of foreign currency to the bank. The new policy introduces several significant alterations:

• Existing Debit Cards: The bank has suspended foreign transaction allowances for debit cards linked to Maldivian Rufiyaa (MVR) accounts.
• New Debit and Credit Cards: Foreign transaction allowances will also be suspended for new debit and credit cards linked to MVR accounts.
• Existing Standard and Gold Credit Cards: The monthly limit for foreign transactions has been reduced to USD 100.

Karl Stumke, CEO and Managing Director of the Bank of Maldives, explained that the decision was driven by a mismatch between card usage and the bank's foreign currency acquisitions. “Over the past year, we've observed that card usage far exceeds the foreign currency we can purchase,” Stumke said. “This discrepancy impacts our ability to support business customers with necessary foreign currency and skews the allocation towards discretionary spending like travel and online shopping.”

Stumke emphasized the bank's responsibility to protect its depositors and maintain balance in foreign currency distribution. “We can only sell what we have been able to purchase,” he added. “With card usage three times higher than our foreign currency purchases, we need to adjust to ensure we are not depleting a scarce resource.”

For customers with USD credit or debit cards linked to USD accounts, the new limits do not apply. Stumke advised those with recurring international payments to use USD accounts for these transactions. Opening a USD account is straightforward through Internet or Mobile Banking, without needing to visit a branch.

“We recognize that these changes will impact our customers, but we believe this is a necessary step to ensure we continue supporting essential economic activities,” Stumke concluded. “We will review the situation periodically and keep our customers updated on any future changes.”