President Dr. Mohamed Muizzu has announced that Bank of Maldives (BML) is expected to significantly ease on the restrictions on foreign transactions by the end of this month.

Speaking at a press conference at the President’s Office, the President said the government had sought an update from the bank regarding the current dollar shortage and the limits placed on international transactions.

According to the President, BML introduced the restrictions due to operational challenges and reduced foreign currency availability.

The bank has since indicated that conditions are expected to improve in the coming weeks.

BML previously attributed the measures to lower foreign exchange inflows, partly linked to a decline in tourist arrivals following developments in the Middle East.

The bank said demand for foreign currency had far exceeded available supply, creating liquidity pressures.

The restrictions affected MVR card transactions on international e-commerce and online retail platforms.

However, cards linked to dollar accounts continue to operate without limits.

BML has also assured customers that students studying abroad remain unaffected and has provided a three-month grace period for students using their parents’ cards to obtain their own student cards.

The bank said the restrictions were necessary to preserve foreign currency for essential needs and ensure fair access to available dollars.

It also reaffirmed its commitment to gradually easing the measures as foreign exchange availability improves.

The expected changes are likely to provide relief for customers who depend on international online purchases and overseas transactions.