Bank of Maldives (BML) has today announced changes to its card limits for foreign transactions.

BML said the changes are effective immediately and are in response to the escalating usage of foreign currency spend on cards and the static sale of foreign currency to the Bank.

The changes announced are as follows:

  • Existing debit cards: Suspension of allowance for foreign transactions for cards linked to MVR accounts.
  • New debit and credit cards: Suspension of allowance for foreign transactions for cards linked to MVR accounts.
  • Existing Standard and Gold credit cards: Monthly limit for foreign transactions reduced to USD 100.

BML CEO and Managing Director Karl Stumke said the Bank has been monitoring card usage over the past year, and have reiterated in numerous speeches and interviews that the Bank can only sell what it has been able to purchase.

“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 said.

He added that the Bank has an obligation to protect depositors and therefore cannot continue to sell more than the bank is able to purchase. Karl said customers using their USD credit cards and / or debit cards linked to USD accounts are unaffected and are free to use up to the available account balance. Customers that have recurring international payments are recommended to have USD accounts as their debit cards’ primary account to process overseas purchases.

He further added that BML understands the changes announced will have a significant impact on customers.

"We do expect this to be a temporary change and we will review this from time to time and keep our customers informed of any changes. We have not taken this decision lightly but have been compelled to take action to ensure we can continue to provide the necessary support for essential economic activities,” Karl said.