BML to Entering the Dollar Black Market Through New ‘Investment’ Scheme

The Bank of Maldives (BML) has come under criticism after launching a new scheme that many claim effectively allows the bank to buy US dollars at black market rates under the label of an “investment” product.

The new service, introduced on Tuesday, enables customers to exchange US dollars with the bank in return for Maldivian rufiyaa and an additional return within a short period. Critics argue that the structure mirrors purchasing dollars at black market prices while presenting it as an investment opportunity.

The scheme was unveiled during BML’s “Chat with the CEO” event held at Hotel Jen for media partners. The bank’s Chief Operating Officer, Mohamed Shareef, said the primary objective of the initiative is to ease the bank’s ongoing US dollar shortage, particularly to secure sufficient foreign currency for international card transactions.

Under the scheme, customers who invest US dollars receive an immediate payment in Maldivian rufiyaa at the official Maldives Monetary Authority (MMA) exchange rate of MVR 15.42 per US dollar. On the following day, the investor receives an additional 25% return in rufiyaa.

Based on these figures, the bank is effectively paying around MVR 19.30 per US dollar, a rate that is very close to the prevailing black market exchange rate in the Maldives.

Shareef said the arrangement would allow the bank to continue processing card transactions without imposing further restrictions or budget controls.

Unlike conventional investment products, which typically generate returns over months or years, this scheme delivers its return within 24 hours. The unusually short investment period has prompted financial observers and members of the public to question whether the product is, in practice, a mechanism for the national bank to purchase US dollars at black market rates.

Many have also expressed concern that if the country’s largest bank begins acquiring US dollars well above the official exchange rate, it could push black market rates even higher, leading to increased import costs and ultimately higher prices for goods and services.

However, Shareef maintained that the scheme would benefit not only the bank and investors but also the wider public by improving the bank’s access to foreign currency and supporting continued card payment services.