Bank of Maldives (BML), on Monday, imposed restrictions on card usage for online trading, cryptocurrency and gambling websites.
According to a statement issued by the bank, the measure was introduced as part of increased efforts to prevent BML cards from being used in illegal financial transactions.
Disclosing that the usage of digital wallets in gambling and online trading websites had increased over the past few months, BML noted that it had conveyed its decision to the Maldives Monetary Authority (MMA) and other relevant government institutions.
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Highlighting that money outflows from transactions conducted via online trading platforms represented an additional strain on the dollar market, BML expressed the importance of stopping such exchanges in order to preserve currency for essential imports.
In mid-September BML also imposed limits on it Debit and Credit Cards for foreign transactions involving Maldivian Rufiyaa accounts in response to a decline in foreign exchange. For all local transactions, BML introduced a USD 250 limit for each card, per month, while an increased limit of USD 750 is applicable for customers living overseas.
The ongoing COVID-19 pandemic resulted in widespread shortages of foreign currency available to businesses, following the halt in tourism and subsequent disruption of foreign currency inflow.
Despite the government's decision to reopen borders from July 15 onwards, tourist arrivals remain below pre-COVID figures, and pressures on the local foreign currency market persist.
As with numerous countries around the world, in the wake of the ongoing COVID-19 pandemic, Maldives closed its air and sea borders to tourist arrivals on March 27, halting the issuance of on-arrival visas.
The restrictions on international travel left Maldives' heavily tourism reliant economy in an extremely vulnerable state. In mid-April, the World Bank projected that Maldives would be the worst-hit economy in the South Asian region due to the pandemic.
MMA earlier revealed that Maldives' usable reserve had depleted to USD 152.6 million by June. The reduction represents a 49 percent depletion compared to January's value of USD 311.3 million.
Overall, the Maldivian government estimates a shortfall of approximately USD 450 million (MVR 6.9 billion) in foreign currency and a state deficit of MVR 13 billion in 2020 as a result of the COVID-19 pandemic's impact on the tourism industry.
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