No, that is a common misconception. The Bank has a strong financial position and holds one of the largest foreign currency deposit bases in the Maldives. In fact, our USD deposits exceed the combined USD deposits of all other local banks.

These deposits are primarily used to support lending. We maintain a prudent credit-to-deposit ratio of around 70%, meaning approximately 70% of deposits are lent to customers, while the remaining 30% is held as cash, reserves, and other liquid assets. Our financial strength is clearly reflected in our published annual and quarterly financial statements.

It is also important to note that the Bank does not rely on long-term foreign borrowings. Apart from small short-term facilities used occasionally for liquidity management, our operations are funded primarily through customer deposits.

This is perhaps the most important point for the public to understand.

The US Dollar deposits we hold belong to our customers. They are liabilities of the Bank and must ultimately be repaid to those depositors in US Dollars. For that reason, the Bank cannot simply use customer deposits—or borrow foreign currency—to fund international transactions initiated from Maldivian Rufiyaa accounts.

Instead, these deposits are invested in US Dollar-denominated loans and other investments that generate repayments in US Dollars over time. Like any commercial bank, we carefully manage our assets and liabilities to protect customer deposits while ensuring the long-term stability of the Bank.

The foreign currency used for these transactions comes primarily from three sources.

First, the Bank earns foreign currency through interest income, profits, and service fees.

Second, we purchase foreign currency from customers during the normal course of business when they exchange foreign currency for Maldivian Rufiyaa.

Third, we receive foreign currency support from the Maldives Monetary Authority (MMA).

These are the sources we use to facilitate legitimate international payment requirements for individuals and businesses.

Over the past 36 months, the Bank has sold approximately USD 1.6 billion to meet customers’ foreign currency requirements.

On average, we sell around USD 39 million every month for international card transactions alone. More than 60% of this volume relates to cross-border e-commerce and online purchases.

All of these transactions are managed within carefully designed controls, budgets, and risk management frameworks.

The challenge is that the Bank sells considerably more foreign currency than it is able to purchase from the market.

One of the key reasons is the existence of a parallel foreign exchange market, where exchange rates are approximately 30% higher than the official bank rate. Naturally, many people choose to sell their foreign currency where they receive a higher return rather than selling it to the Bank.

As a result, while customer demand for foreign currency continues to increase, the Bank’s ability to purchase foreign currency from the market becomes more limited.

No. This issue did not emerge overnight.

Since 2021, the Bank had been operating with a net short foreign exchange position of approximately 20%. In practical terms, this meant the Bank had sold nearly USD 200 million more than it actually held. As demand continued to grow while market purchases remained constrained, this imbalance increased and posed a significant financial risk to the Bank.

When I assumed the role of CEO in October 2024, addressing this issue became one of my highest priorities.

With the support of the Government, we successfully restored the Bank’s foreign exchange position to a near-neutral level by the end of 2025.

This was achieved by converting a portion of the Government’s Maldivian Rufiyaa Treasury Bills held by the Bank into long-term US Dollar Treasury Bonds. In effect, the Government assumed the foreign currency obligation, allowing the Bank to significantly strengthen its foreign exchange position.

At the same time, we implemented strategies to increase the Bank’s commercial foreign currency income and enhance our ability to purchase foreign currency from the market. Together, these measures enabled us to maintain a stable foreign exchange position.

I would also like to clarify an important point. The Bank did not provide US Dollars to the Government for any other purpose. The restructuring of Treasury Bills into Treasury Bonds was simply the most effective solution available to strengthen the Bank’s foreign currency position.

Strengthening our foreign exchange position enabled us to significantly enhance the foreign currency support available to customers.

We increased student card limits, raised overseas spending limits on debit and credit cards, introduced additional foreign currency support for travel expenses such as airline tickets and accommodation, and expanded support for education and medical expenses.

These improvements were possible because the Bank’s foreign currency position became substantially stronger.

Absolutely.

The Bank remains fully committed to supporting legitimate foreign currency requirements for travel, education, healthcare, business, and other essential international payments.

Our responsibility is to balance customer needs with the long-term sustainability of the Bank’s foreign currency position so that we can continue providing these services well into the future.

The single biggest driver is the rapid growth in international e-commerce and online shopping.

Over the past five years, the volume of these transactions has increased nearly fourfold. This reflects changing consumer behaviour and lifestyles, but it has also created a substantial increase in demand for foreign currency.

This is another common misunderstanding.

Every international transaction made from a Maldivian Rufiyaa account represents a sale of foreign currency by the Bank. Therefore, our ability to process these payments depends entirely on how much foreign currency we are able to acquire.

Having sufficient Maldivian Rufiyaa in an account does not automatically mean an equivalent amount of foreign currency is available. Foreign currency is a limited resource and must be managed responsibly to ensure that it remains available for everyone’s essential needs.

The objective is to increase the pool of foreign currency available to support the growing demand for international transactions.

Under this programme, customers can invest by selling US Dollars to the Bank at the official exchange rate of MVR 15.42. The foreign currency acquired through this programme is then used to facilitate international payments for the wider public.

In return, participating customers receive a significant share of the commission generated from these transactions.

The greatest beneficiary is the public.

The programme increases the availability of foreign currency for travel, education, healthcare, business, and international online transactions.

Participating investors earn a share of the commissions generated, while the wider community benefits from improved access to foreign currency.

From the Bank’s perspective, we have deliberately chosen to share a significant portion of the income generated from these transactions with our customers. In other words, the Bank is reinvesting part of its own earnings to better support our customers, strengthen access to foreign currency, and contribute to the broader Maldivian economy.