Maldives police launch investigation into alleged coup attempt after Bank of Maldives suspends foreign transactions

The decision, announced by the state-owned Bank of Maldives, has shocked many, police said in a statement. The decision came when the opposition Maldivian Democratic Party (MDP) was addressing a press conference on the government's financial situation.

At the same time, police said hundreds of “bot accounts” were active on social media calling on residents to take to the streets to overthrow the government, reports Maldives Republic.

According to the police statement, there were sufficient reasons to believe that the opposition's action following the BML decision, which was contrary to the instructions given by the Muizzu administration, was an attempt to overthrow the government.

While the police have accused the opposition MDP of trying to overthrow the government, the BML board of directors took the decision on Saturday and announced it publicly on Sunday.

The police issued the statement after similar allegations were made at a rally of the ruling People's National Congress (PNC).

Political observers believe that the Muizzu-led administration had enough time to talk to the BML board of directors, as it was the board that had taken the decision to hold back the declaration and also made the public announcement.

BML has withdrawn its decision to suspend allowing foreign transactions on its debit and credit cards following pressure from the Maldives Monetary Authority (MMA).

In a statement issued on Sunday, the bank said, “The change in card limits for foreign transactions announced on August 25, 2024, based on the direction of our regulator, the Maldives Monetary Authority, has been withdrawn.”

The decision, initially announced on Sunday, suspended permission for foreign transactions for all existing and new debit and credit cards linked to MVR accounts. In addition, the bank has reduced the monthly foreign transaction limit for existing Standard and Gold credit cards to US$100, reports Republic of Maldives.

The decision was taken due to a significant increase in the Bank's foreign exchange expenditure compared to its foreign exchange acquisitions, raising concerns about its impact on the availability of foreign exchange for essential economic activities.

According to a report from the Republic of Maldives, the sudden change in policy has caused widespread concern, sending the black market rate for the dollar soaring, and raising fears of inflation and economic instability.

Analysts and opposition politicians condemned the decision and warned of serious economic consequences and disruption to essential international payments.