BML's decision was against government advice: Govt

Bank of Maldives (BML)'s decision to limit foreign transactions via it's debit and credit cards connected to Maldivian Rufiyaa accounts was not a good decision and one that was that was taken against the the government's advice, the Maldivian government said yesterday.

While the decision was met with nationwide criticism, BML reversed the limits within a few hours. The bank said that reversal was in accordance with the instructions from central bank Maldives Monetary Authority (MMA).

In a press conference held at the President's Office yesterday, Economic Minister Mohamed Saeed said that BML's decision to limit dollar transactions (from Maldivian Rufiyaa accounts) was not what the government wanted.

He also revealed that the announcement from BML came amidst the government's discussions with the bank.

While Maldivian students who study abroad, locals who reside in foreign countries and even those who live in the country depend heavily on the monthly dollar allowance set by BML, making arrangements in a way that does not negatively impact them is very important, the minister said.

"The President spoke with BML directly. The Finance Minister also spoke [with them]," Saeed said.

He went onto say that the current administration will not use the financial and economic problems inherited from the previous government as an excuse to make life difficult for students, small businesses and the general public. Students abroad not having access to dollars is not something the government would allow at all, he added.

Saeed also said that President Dr. Mohamed Muizzu met with BML's CEO Karl Stumke yesterday after the bank's announcement and that the government will work to provide a solution for the bank's concerns.

"There may be things that BML needs. BML is the people's bank. It will take time to see what BML needs and what MMA can do," he said.

Foreign Minister Moosa Zameer also spoke at the press conference and said that despite the government's dialogue with BML, the bank ultimately chose against the government's wishes.

Finance Minister Dr. Mohamed Shafeeq, speaking yesterday, said that the government has plans to make arrangements to meet the assistance needs of the bank.

Shafeeq went onto say that important meetings were held in December of last year as well as in March and June of this year to resolve the dollar issue. In line with the discussions, efforts will be made to provide dollar support to BML, he said, adding that the dollar inflow into the country decreased significantly because this time of the year is normally a low dollar income period.

Shafeeq said they would make significant efforts to prevent such difficulties in the future.

"Printing strengthens the demand for dollars. This is actually why there is such a big demand for dollars. Now we are trying to get more inflow from dollar-earning sectors," he said.