What Impact Do New Dollar Remittance Restrictions Have on Keralaites in the Maldives?
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Synopsis
Around 7,000 Keralaites in the Maldives are struggling due to new dollar remittance caps imposed by the Maldives Monetary Authority. This drastic cut from USD 700 to USD 150 raises urgent concerns about financial stability among expatriates. Explore the implications of this policy on families and the local economy.
Key Takeaways
- 7,000 Keralaites in the Maldives facing financial crisis.
- New remittance cap set at USD 150 monthly.
- Previous limits were USD 700 and USD 500.
- Workers fear inability to support families and repay loans.
- Professionals in healthcare and tourism are among the most affected.
Thiruvananthapuram, Oct 20 (NationPress) Approximately 7,000 Keralaites employed in the Maldives are encountering a financial dilemma after new restrictions have been enforced by the Maldives Monetary Authority (MMA) on dollar remittances.
The latest limitation caps monthly transfers at a mere USD 150, which severely affects expatriates who receive their earnings in Maldivian Rufiyaa (MVR).
Previously, the remittance limit was set at USD 700, then reduced to USD 500, and now drastically slashed to USD 150—equivalent to about Rs 13,000.
Many workers express that this sum is inadequate to support their families back home or to repay loans taken to secure employment in the island nation.
“This will lead to a significant crisis for individuals like myself,” stated a Keralaite working in the Maldives.
“We have families relying on us and debts to settle. With just Rs 13,000 permitted for remittance, our circumstances are grim.”
The affected group encompasses professionals in healthcare—including doctors, nurses, and paramedics—as well as educators and employees in the tourism sector.
Economist Mary George remarked that the Bank of Maldives, the country’s monetary authority, is undergoing a substantial downturn.
“Maldives is currently experiencing a financial crisis akin to India’s crisis in 1990. Unlike India, which could utilize its gold reserves, the Maldives lacks such alternatives,” she stated.
The remittance limitations have sparked widespread anxiety among the expatriate community, many of whom are concerned about prolonged financial instability if this policy persists.
Point of View
We recognize the urgency of the situation impacting Keralaites in the Maldives. The new remittance restrictions present a critical challenge, underscoring the need for immediate dialogue and potential solutions. Our commitment is to provide a platform for voices affected by this policy, ensuring transparency and accountability in addressing these financial hardships.
NationPress
20/10/2025
Frequently Asked Questions
What are the new remittance limits for Keralaites in the Maldives?
The new remittance limit is USD 150 per month, significantly reduced from the previous USD 700.
How many Keralaites are affected by these restrictions?
Approximately 7,000 Keralaites working in the Maldives are facing these financial constraints.
What professions are impacted by the remittance cap?
The affected workforce includes healthcare professionals, teachers, and employees in the tourism sector.
What is the overall sentiment among expatriates regarding these changes?
Many expatriates are deeply concerned about their financial stability and their ability to support families back home.
What is the historical context of the financial situation in the Maldives?
Economist Mary George has likened the current financial crisis in the Maldives to India's economic turmoil in 1990.
