Muizzu orders probe into BML’s US dollar payment halt, calling it a ‘financial coup’ attempt, while opposition denies involvement and warns of damage to the Maldives’ financial reputation.
The Maldives President, Mohamed Muizzu, has ordered an investigation into the Bank of Maldives’ (BML) recent decision to suspend US dollar payments from MVR (Maldivian rufiyaa) accounts, which was later restored. Muizzu called it an attempted “coup” against the administration.
On Sunday, the Bank of Maldives (BML) halted overseas transactions for both existing debit cards along with new debit and credit cards linked to MVR accounts. It also reduced the monthly standard and gold credit card limit to $100.
However, it overturned the decision within hours, citing orders from its regulator, the Maldives Monetary Authority (MMA), according to the Edition news portal.
The bank noted that the changes, which have since been revoked, were implemented in response to the increasing use of foreign currency on cards and the stagnant sale of foreign currency to the bank.
During a meeting at the ruling People’s National Congress (PNC) party headquarters on Monday night, President Muizzu stated that he and his ministers had promptly taken action to resolve the banking issue as soon as it came to his attention. He emphasized that the bank’s decision was made contrary to his counsel, according to the portal’s report.
Muizzu stated that many people had questioned why a government-majority holding bank would make such a choice against official guidance. However, most individuals were unaware that BML’s Board of Directors does not have a government majority currently, he stated.
“However, from amongst private directors, Champa Mohamed Moosa and Hussain Afeef offered a lot of assistance. It is through their help, and through them talking to directors that represent them, and through the work our cabinet did from morning onwards, that we were able to revoke [BML’s decision] by evening,” he added.
Muizzu, who also leads the ruling People’s National Congress (PNC) party, claimed that the incident was a deliberate coup attempt orchestrated by a select group. He further noted that the police have now launched investigations into the matter.
“What happened here, anyone of sound mind will be able to join the dots when you think about it. This, as Shiyam has also said, was doubtless an attempted coup,” he said.
Meanwhile, Fayyaz Ismail, chairperson of the main opposition Maldivian Democratic Party (MDP), stated that the events indicate a coup brewing within President Muizzu’s administration rather than one instigated by foreign forces, according to the Sun news portal.
Denying any involvement in the alleged coup attempt, Fayyaz, condemned the allegations, saying, “It is very lowly to claim that a coup is being attempted every time our Admiral Ameer gives a press conference.”
He further stated that the remarks made by top government officials, including President Muizzu, regarding the BML were sufficient to jeopardise the entire financial system.
“When the head of state comes out and alleges that the bank he controls conspired with the opposition to stage a coup, this is a huge allegation being made against the Bank of Maldives before the entire global financial community,” he said.
The MDP chairperson warned that such comments could lead to a loss of confidence in the bank among international financial institutions.
