BML Increases Dollar Support for SMEs Sixfold, Easing Foreign Payment Bottlenecks

On 30th June, the Bank of Maldives (BML) announced a major adjustment in its dollar allocation policy for small and medium enterprises (SMEs), increasing support for telegraphic transfers (TTs) from 5–10% of the transaction amount to 30%. At the same time, the bank raised the monthly foreign transaction limit on MVR-denominated debit cards from USD 250 to USD 500.

For many Maldivian businesses, particularly SMEs involved in importing goods or paying for overseas services, limited access to foreign currency through official channels has long been a structural constraint. This move from BML directly addresses that pressure point, offering a clearer pathway for such enterprises to meet their dollar requirements through formal banking channels rather than relying on costlier, less predictable alternatives.

The timing is notable. While the Maldives’ economy continues to rely heavily on tourism for dollar inflows, the past few years have highlighted the vulnerabilities that come with a narrow foreign exchange base. As global market conditions shift and import needs grow, local businesses outside the tourism sector, from retail and construction to logistics and healthcare, often find themselves navigating foreign payment obligations with limited dollar access.

By increasing SME TT support sixfold, BML is offering a tangible measure that could reduce reliance on informal forex markets, which tend to operate at higher premiums and contribute to parallel market pressures. At the same time, the bank appears to be calibrating its easing carefully, as seen in the modest but significant increase in debit card foreign transaction limits. Rather than opening the floodgates, this is a controlled adjustment, balancing business needs with the realities of managing national dollar reserves.

From an economic perspective, the move signals cautious confidence. The Maldives Monetary Authority (MMA) has generally maintained a conservative approach to reserve management, balancing foreign currency outflows with inflows from tourism and other sectors. BML’s policy update suggests an assessment that there is room to support SMEs more actively without undermining broader financial stability.

For SMEs, these changes bring immediate operational benefits: easier access to foreign currency for essential payments, less dependency on costly informal channels, and greater predictability in financial planning. Over time, this could support a healthier business environment where local enterprises can grow with more reliable financial infrastructure behind them.

While foreign exchange challenges are unlikely to disappear entirely for a small import-dependent economy like the Maldives, BML’s move is a clear step in recognising and responding to the evolving needs of the country’s business sector. It is a reminder that building economic resilience isn’t only about big industries and large-scale investments, but also about making sure smaller players have the tools they need to compete and thrive.

On 30th June, the Bank of Maldives (BML) announced a major adjustment in its dollar allocation policy for small and medium enterprises (SMEs), increasing support for telegraphic transfers (TTs) from 5–10% of the transaction amount to 30%. At the same time, the bank raised the monthly foreign transaction limit on MVR-denominated debit cards from USD 250 to USD 500.

For many Maldivian businesses, particularly SMEs involved in importing goods or paying for overseas services, limited access to foreign currency through official channels has long been a structural constraint. This move from BML directly addresses that pressure point, offering a clearer pathway for such enterprises to meet their dollar requirements through formal banking channels rather than relying on costlier, less predictable alternatives.

The timing is notable. While the Maldives’ economy continues to rely heavily on tourism for dollar inflows, the past few years have highlighted the vulnerabilities that come with a narrow foreign exchange base. As global market conditions shift and import needs grow, local businesses outside the tourism sector, from retail and construction to logistics and healthcare, often find themselves navigating foreign payment obligations with limited dollar access.

By increasing SME TT support sixfold, BML is offering a tangible measure that could reduce reliance on informal forex markets, which tend to operate at higher premiums and contribute to parallel market pressures. At the same time, the bank appears to be calibrating its easing carefully, as seen in the modest but significant increase in debit card foreign transaction limits. Rather than opening the floodgates, this is a controlled adjustment, balancing business needs with the realities of managing national dollar reserves.

From an economic perspective, the move signals cautious confidence. The Maldives Monetary Authority (MMA) has generally maintained a conservative approach to reserve management, balancing foreign currency outflows with inflows from tourism and other sectors. BML’s policy update suggests an assessment that there is room to support SMEs more actively without undermining broader financial stability.

For SMEs, these changes bring immediate operational benefits: easier access to foreign currency for essential payments, less dependency on costly informal channels, and greater predictability in financial planning. Over time, this could support a healthier business environment where local enterprises can grow with more reliable financial infrastructure behind them.

While foreign exchange challenges are unlikely to disappear entirely for a small import-dependent economy like the Maldives, BML’s move is a clear step in recognising and responding to the evolving needs of the country’s business sector. It is a reminder that building economic resilience isn’t only about big industries and large-scale investments, but also about making sure smaller players have the tools they need to compete and thrive.