Bangladesh Bank proposed three mechanisms to simplify remittance transfers from the Maldives, aiming to reduce costs and reliance on informal markets for migrant workers. The central bank sent a letter on 8 October to Ahmed Munawar, governor of the Maldives Monetary Authority (MMA), outlining these options. Governor Md Mostaqur Rahman noted that Bangladeshi workers continued to face difficulties sending earnings home despite efforts to strengthen formal foreign exchange channels in the Maldives.
Three pathways for transfers
The proposals include using Maldivian rufiyaa through an Asian Clearing Union arrangement, allowing travel-related payments in rufiyaa, and establishing a bilateral currency swap. Under the first option, corresponding funds would be paid to beneficiaries in taka through authorised dealer banks. The second proposal involves licensed banks and money transfer operators making eligible travel payments in rufiyaa for Bangladeshi nationals. The third seeks a direct currency swap between the two nations to facilitate repatriation.
Bangladesh Bank stated the mechanisms would require regulatory approval and compliance with both countries’ laws. The central bank expressed readiness to hold discussions with the MMA through a joint delegation comprising officials and representatives of the Bangladesh Mission in the Maldives. The proposed meeting would focus on regulatory requirements, operational arrangements, and settlement mechanisms.
Workers face high fees and informal markets
Banks and exchange houses are reluctant to accept the Maldivian local currency directly. As a result, Bangladeshi expatriates buy US dollars on the curb market and send money home through banks or exchange houses. They also pay high commissions to transfer funds through formal channels, leading to financial losses for workers.
According to 2024 data, the Maldives had more than 200,000 foreign workers, including over 100,000 Bangladeshis. Remittances from the Maldives fell 16.4% to $118 million in FY2025–26, down from $141.1 million in FY2024–25. Data for the first three months of the current fiscal year shows $38.05 million in remittances.
While the proposals aim to streamline transfers, the practical implementation depends on regulatory frameworks and cooperation between the two central banks. A successful swap or clearing arrangement could reduce the need for dollar conversions, potentially lowering transfer fees and stabilizing the flow of funds.
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