Maldives police launch probe into alleged coup attempt after suspension of foreign transactions by Bank of Maldives

The Maldives Police Service (MPS) has commenced a probe into allegations that the opposition tried to stage a coup d’etat after the Bank of Maldives (BML) decision on Sunday to suspend foreign transaction allowances on debit and credit cards related to Maldivian Rufiyaa (MVR) accounts, Maldives-based Maldives Republic reported.

In a statement, the police said that many were shocked by the decision announced by the state-owned Bank of Maldives while the opposition Maldivian Democratic Party (MDP) was addressing a press conference on the government’s financial situation.

Police said that at the same time, hundreds of “bot accounts” were active on social media, calling on residents to take to the streets to overthrow the government, Maldives Republic reported.

There is a reason to believe that the opposition’s action after BML’s decision, which was made contrary to the directions given by the Muizzu administration, constituted an attempt to overthrow the government, according to the police statement.

The police have accused the opposition MDP of trying to overthrow the government while the BML’s board of directors made the decision on Saturday and announced it publically on Sunday.

Police issued the statement after similar allegations were made at a ruling People’s National Congress (PNC) rally.

Political observers believe that the Muizzu-led administration had enough time to talk to the BML board of directors since the board made the decision and the public announcement to stop the announcement.

The BML reversed its decision to suspend foreign transaction allowances on its debit and credit cards after facing pressure from the Maldives Monetary Authority (MMA).

In a statement issued on Sunday, the bank said, “Changes to card limits for foreign transactions announced on 25th August 2024 have been reversed based on instruction from our regulator, the Maldives Monetary Authority.”

The decision which was announced initially on Sunday, suspended foreign transaction allowances for all existing and new debit and credit cards related to MVR accounts. In addition, the bank brought down the monthly foreign transaction limit for existing Standard and Gold credit cards to USD 100, according to Maldives Republic report.

The decision was attributed to a significant rise in foreign currency spending compared to the bank’s foreign currency acquisitions, sparking concerns about its effect on the availability of foreign currency for essential economic activities.

The abrupt change in policy had sparked widespread concern, including a rise in the black market rate for the dollar and increased fears of inflation and economic instability, Maldives Republic reported.

Analysts and opposition leaders had slammed the decision and warned of severe economic repercussions and disruption to essential international payments.