Bank of Ceylon halts rufiyaa-to-USD conversions for remittances

Bank of Ceylon (BOC) has suspended the conversion of Maldivian rufiyaa into US dollars for outbound transfers via its Smart Remit service. The decision, which took effect on Tuesday, is a response to an ongoing shortage of US dollars within the Maldives banking system.

Under the new restrictions, customers can no longer use rufiyaa for overseas remittances through this specific service. However, transfers may still proceed if the necessary US dollar funds are already available. The bank has not provided a timeline for when the conversion service will resume.

This move follows recent government and Maldives Monetary Authority (MMA) efforts to bolster foreign currency reserves. New amendments to the Foreign Exchange Act now require resorts to convert 40 per cent of their monthly foreign currency revenue through local banks, up from the previous 20 per cent requirement. Despite these measures and increased enforcement against unauthorized currency trading, access to US dollars at official exchange rates remains constrained for many individuals and businesses.