Indian expats in Maldives face remittance difficulties due to dollar shortage

By  News On Air   Dec 02, 2024

In Maldives, Indian expatriates working in the archipelago are facing difficulties sending remittances due to a persistent dollar shortage. The Maldives Monetary Authority (MMA) had imposed restrictions on dollar availability, limiting access for those earning salaries in Maldivian Rufiyaa (MVR). Indian professionals, including doctors and teachers, are among the most affected, with families back home relying on remittances. The Indian High Commission has urged the Maldives government to ease restrictions and facilitate smoother financial transactions.

The Maldives is currently grappling with a dollar shortage, with usable reserves having dropped to USD 32 million last month, marking the lowest level in three years. Forex shortages have been associated with large outstanding repayments facing the archipelago for the years 2024-2026. Inconsistent forex policies and a severe dollar shortage that surfaced in August this year, led to the Bank of Maldives reducing dollar limits for local accounts, creating widespread panic.

While the tourism sector generates millions in foreign currency, inefficient management has exacerbated the problem. In response, the MMA introduced a new rule in October, mandating that all tourism-related foreign currency earnings be deposited into banks.

At the same time, responding to a Parliament question raised in Lok Sabha, the Ministry of External Affairs has said the restrictions on dollar remittances from the Maldives had come to the ministry’s attention. The ministry added that Indian citizens earning salaries in dollars are unaffected, and said that the ministry is in discussions with MMA to facilitate smoother remittance processes for Indian employees in Maldives.