Over the past two years, one of the most notable shifts in the Maldivian financial landscape has been the steady improvement in public access to foreign currency.

This change follows a period in which strict limits on USD usage through Maldivian Rufiyaa debit cards created significant constraints for travellers, students and families managing essential overseas expenses.

When President Dr Mohamed Muizzu assumed office, individuals were restricted to just USD 250 per month on MVR debit cards, a measure introduced during the COVID-19 period, when weakened tourism revenue and supply disruptions led to acute dollar shortages. Addressing these limitations quickly became a priority for the new Administration, prompting a series of fiscal and monetary reforms aimed at restoring confidence and liquidity in the banking system.

A key component of this strategy was the requirement for businesses earning foreign currency to deposit their USD revenue into local banks and sell a portion of it into the formal financial system. This, together with enhanced oversight by the Maldives Monetary Authority (MMA), strengthened dollar inflows and improved bank exchange positions, allowing Bank of Maldives (BML) to expand its USD services.

As a result of these reforms, debit card limits have increased significantly. Individuals can now use up to USD 500 per transaction and up to USD 3,000 per month for essential payments such as flights, accommodation, and medical bills. Point-of-sale limits have risen to USD 1,000 per month, easing international transactions for residents.

Businesses have also benefitted, with banks increasing the availability of telegraphic transfers (TTs) by up to 50 per cent. Additional USD has been made available for those travelling overseas for medical treatment via NSPA and Aasandha.

Government officials highlight that these improvements reflect the cumulative effects of its fiscal and monetary policies over 104 weeks of Administration. In practical terms, the usable monthly USD limit on debit cards has expanded by 1,100 per cent, marking a substantial easing of financial pressures for Maldivians and signalling improved stability in the economy.