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Friday, 23rd October 2026
Bangladesh Bank Moves to Open Bank Branches in Maldives, Proposes Alternative Currency Settlement System
23 October 2026 19:10 PM
NEWS DESK
Bangladesh Bank is pursuing plans to establish branches of Bangladeshi banks in the Maldives and introduce alternative currency settlement mechanisms to make remittance transfers easier, cheaper and more accessible for Bangladeshi expatriates working in the island nation.
A senior Bangladesh Bank official said the initiative aims to encourage workers to send money home through formal banking channels while expanding access to financial services.
“We are trying to open branches of Bangladeshi banks in the Maldives so that expatriates can send their earnings home through formal channels,” the official said.
Bangladesh Bank Governor Dr Mostakur Rahman has written to Ahmed Munawar, governor of the Maldives Monetary Authority (MMA), seeking cooperation on the initiative. Bangladesh is now awaiting a response from the Maldivian authorities.
To advance the proposal, Bangladesh Bank recently held a virtual meeting with the Bangladesh Embassy in the Maldives to discuss opening bank branches and strengthening formal remittance channels.
The official said several private commercial banks, including BRAC Bank and National Bank, had assessed the feasibility of establishing branches in the Maldives.
Banks from Sri Lanka, Pakistan and India already operate branches in the country, providing potential examples for Bangladesh to follow.
Remittances from Maldives Decline
Bangladesh Bank data show that Bangladesh received $118 million in remittances from the Maldives in the 2025–26 fiscal year, down from $141.1 million in the previous fiscal year — a decline of approximately 16.4 per cent.
However, remittance inflows from the Maldives totalled $38.05 million during the first three months of the current fiscal year.
The central bank believes that the decline in remittances, combined with difficulties faced by Bangladeshi workers when transferring money home, has highlighted the need for more accessible, affordable and efficient formal remittance services.
Three Proposals to Simplify Money Transfers
Alongside the proposed bank branches, Bangladesh Bank has outlined three measures to improve remittance transfers from the Maldives.
In a letter sent to the MMA governor on October 8, Governor Mostakur Rahman sought cooperation between the two countries’ monetary authorities to establish a secure, efficient, transparent and low-cost remittance framework.
The first proposal involves exploring arrangements under the Asian Clearing Union (ACU) framework to facilitate the use of the Maldivian rufiyaa for eligible transactions. Under the proposed mechanism, beneficiaries in Bangladesh would receive the equivalent amount in taka through authorised dealer banks.
The second proposal would allow licensed banks and money transfer operators in the Maldives to facilitate eligible travel-related payments by Bangladeshi nationals in rufiyaa. Authorised dealer banks in Bangladesh would issue taka-denominated cards, with transactions settled through a coordinated regulatory framework between the two countries.
The third proposal calls for exploring a bilateral currency swap arrangement between Bangladesh and the Maldives to facilitate the repatriation of earnings by Bangladeshi workers.
Bangladesh Bank said implementation of these measures would depend on the relevant legal requirements and regulatory approvals in both countries.
The central bank is also preparing to form a joint delegation comprising its officials and representatives of the Bangladesh mission in the Maldives. The delegation would meet the MMA to discuss regulatory requirements, operational arrangements and settlement mechanisms.
Currency Exchange Barriers Complicate Remittances
More than 100,000 Bangladeshis are currently working in the Maldives. According to 2024 figures, the country had more than 200,000 foreign workers, including over 100,000 Bangladeshis.
Despite this sizeable expatriate community, workers face difficulties sending money through formal channels because some banks and money exchange operators are reluctant to accept the Maldivian rufiyaa directly for remittance transactions.
As a result, many workers have to buy US dollars through informal currency markets before transferring the money through banks or exchange houses. Additional commissions can make the process more expensive.
According to Bangladesh Bank, these obstacles discourage the use of formal remittance channels and increase reliance on informal systems, including hundi. This, in turn, limits the flow of expatriate earnings through the country's formal banking system.
Central Bank Seeks Lower Costs and Greater Transparency
Bangladesh Bank expects that establishing branches of Bangladeshi banks in the Maldives, alongside the proposed currency settlement arrangements, could reduce reliance on informal currency markets and make transactions more transparent.
If the necessary approvals and operational mechanisms are secured, expatriates could gain easier access to banking services and send money to their families more conveniently and at lower cost.
The initiative is part of broader efforts to make international remittances safer, faster and more affordable while increasing the volume of money entering Bangladesh through authorised channels.
However, the proposals remain subject to a response from the Maldives Monetary Authority, regulatory approval and effective coordination between the two countries.
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