The Bank of Maldives (BML) has increased foreign currency assistance to businesses by USD 46 million this year compared with the previous year, contributing to the Government’s efforts to alleviate the US dollar shortage and ensure continued access to essential goods.

Foreign currency pressure during the COVID-19 pandemic had previously led BML to restrict dollar sales to businesses. However, the Foreign Currency Act, introduced last year under President Dr Mohamed Muizzu, has since enabled greater currency inflows into the banking system, helping to ease these constraints.

Minister of Economic Development and Trade Mohamed Saeed stated that BML has implemented several measures to support businesses, especially small and medium-sized enterprises (SMEs). He highlighted that the bank facilitated USD 69.2 million in telegraphic transfer (TT) services in 2024, with the numbers exceeding by an additional USD 46 million this year.

BML has also revised its TT allocation structure. Companies may now secure up to 50 per cent of requested dollars for invoices below USD 2,500, up to 30 per cent for invoices between USD 2,500 and USD 5,000, and up to 15 per cent for invoices exceeding USD 5,000.

Further, the bank has reduced collateral requirements for business loans by 60 per cent and streamlined lending processes to enhance financial accessibility.

Meanwhile, the Government has announced plans to introduce special incentives for SMEs over the next two years. As part of this initiative, MVR 500 million in loans will be issued next year through the SME Digital programme.