Bank of Maldives (BML) has launched a new US dollar investment product that allows customers to invest their US dollar holdings and earn returns of up to 25 per cent.

Under the new offering, customers' invested funds will be used to support the bank's commercial operations, including fee-generating activities. BML said the funds will help facilitate services such as foreign card payments, e-commerce transactions and the financing of imports.

The investment product is available through the BML Mobile App and Internet Banking. The bank said information on the daily investment pools, each offering different rates of return, will be available from Tuesday.

Customers investing in the product will receive the equivalent value of their investment in Maldivian Rufiyaa (MVR) immediately, with profits credited to their MVR account the following day.

Speaking at the launch, BML Chief Executive Officer and Managing Director Mohamed Shareef said demand for foreign currency through the bank's card services has grown significantly in recent years, driven largely by the rise in cross-border e-commerce.

The CEO stated the value of US dollars sold for overseas debit and credit card transactions has increased 3.7 times over the past five years, reaching an average of USD 39.3 million per month this year. He added that between 250,000 and 300,000 customers now make foreign transactions each month using their MVR cards.

Shareef said BML sold approximately USD 1.6 billion over the past 36 months to meet personal foreign currency requirements and business transactions, with nearly 60 per cent of that amount used for card payments.

He said the new investment product was introduced to help the bank secure additional US dollar liquidity without restricting access to foreign transactions. The model allows customers with US dollar income to invest their funds, which the bank can then use to facilitate foreign currency transactions and other commercial activities before distributing a share of the resulting income to investors as returns.

The investment product was demonstrated during the launch event, with BML showcasing the fully digital investment process available through its mobile and internet banking platforms.