While the decrease in access to foreign transaction limits was supported during the pandemic, when the change was not reversed following the pandemic, questions started arising on whether these changes were as temporary as the bank stated back in 2020.
BML
One of the biggest changes, apart from the global lockdown that Maldivian citizens were faced with during the COVID-19 pandemic, was the strict change in the US dollar card limit implemented by the Bank of Maldives. The Bank of Maldives (BML) announced the new limit on September 16, 2020, citing that the local economy had been hit hard as a result of the COVID-19 pandemic. As the world came to a halt, major disruptions were caused to the tourism industry, subsequently leading to a decline in foreign exchange earnings resulting in pressure on dollar liquidity intensifying.
Although the Maldives Monetary Authority (MMA) made an announcement stating that additional dollars would be provided to banks for essential imports, as additional measures were required to keep a smooth flow of dollars within the economy, BML decided to implement a limit of USD 250 per month per card for all BML debit and credit cards on foreign transactions and USD 750 per month to support Maldivians living overseas. In addition, citizens were given the option to get additional dollar support for medical trips by sending the supporting documents to the bank. While these changes were supported during the pandemic, when the change was not reversed following the pandemic, questions started arising on whether these changes were as temporary as the bank stated back in 2020.
While it took the bank a good four years, there are finally some positive changes to the foreign transaction limit for students who are living abroad. On 23rd October 2024, BML announced an increase in the monthly foreign transaction limit for debit cards for students abroad to USD 1,200. To access this new card limit, students will be required to register with the Bank via an online portal to access the new increased limit and must submit supporting documents. This was a change that was demanded by students since the decrease in foreign transaction limit in 2020 as students were one of the mainly affected demographics by the change.
While there continue to be challenges with USD availability, we also recognize the difficulties faced by students abroad. Today’s announcement reflects our commitment to prioritize and support their everyday financial needs while overseas.
Although in some countries the USD 750 limit was more than enough, most students struggled without access to more dollars, leading to more international transactions having to be made at a loss for students. With the recent announcement, however, students are finally getting access to the much-needed foreign transaction limit that would allow for a more comfortable study period abroad.
