Foreign currency transactions conducted through official banking channels have increased significantly in recent years, with Economic Development, Transport and Trade Minister Mohamed Saeed highlighting a sharp rise in dollar allocations across several sectors.

Speaking amid political debate over foreign exchange availability, Minister Saeed presented comparative figures showing that the volume of official foreign currency transactions has grown substantially compared with 2021.

Monthly spending through bank cards has increased from an average of USD 10 million in 2021 to around USD 39 million currently.

At the same time, monthly telegraphic transfers used to finance imports have risen from USD 6.7 million to USD 26.6 million.

Government support for businesses seeking foreign currency has also expanded.

Minister Saeed said the state now provides between 30 and 40 percent of merchants' foreign exchange requirements, compared with about 5 percent previously.

Foreign currency allocations for social needs have also increased.

Monthly transfers for overseas higher education have reached approximately USD 3.6 million, up from USD 1.9 million in 2021.

Medical-related foreign exchange allocations have recorded an even larger increase, rising to around USD 3 million per month from approximately USD 159,000 four years ago.

Meanwhile, monthly foreign currency allocations for Maldivians traveling overseas have climbed to about USD 10 million from USD 1.5 million in 2021.

Minister Saeed said these transactions continue to be processed at the official exchange rate, arguing that the figures demonstrate that foreign currency is still being made available through formal channels.

The minister also criticized claims that official foreign exchange transactions have effectively stopped, saying such assertions do not reflect the current level of dollar flows through the banking system.

Official USD transactions surge as bank allocations rise: Minster Saeed