Bangladesh eyes currency swap to facilitate remittances from Maldives

By the Editorial Team · Monday, October 12, 2026

Bangladesh Bank has proposed three new mechanisms to facilitate remittance transfers from Bangladeshi migrant workers in the Maldives, aiming to address existing challenges with currency exchange and high transfer costs. These measures, including currency clearing arrangements and a potential bilateral currency swap, seek to make remittances safer, more efficient, and cost-effective, pending regulatory approvals and further bilateral discussions.

Bangladesh Bank has proposed several measures aimed at easing the transfer of remittances from Bangladeshi migrant workers in the Maldives, citing ongoing difficulties despite existing formal channels. In a letter dated October 8 to Ahmed Munawar, governor of the Maldives Monetary Authority (MMA), Bangladesh Bank Governor Md Mostaqul Rahman outlined three potential mechanisms to facilitate safer, more efficient, and cost-effective remittance flows.

The first proposal involves facilitating the use of the Maldivian rufiyaa under an arrangement with the Asian Clearing Union (ACU). Under this plan, funds denominated in rufiyaa would be cleared through the ACU, with recipients in Bangladesh receiving payments in taka through authorized dealer banks.

The second suggestion focuses on enabling licensed banks and money transfer operators in the Maldives to process travel-related payments in rufiyaa for Bangladeshi nationals visiting the country. Conversely, authorized dealers in Bangladesh could issue taka-denominated cards for use in the Maldives, with settlements managed under an agreed regulatory framework between the two nations.

The third proposal calls for exploring a bilateral currency swap agreement between Bangladesh and the Maldives. This mechanism would help streamline the repatriation of migrant workers’ earnings by providing liquidity support and settlement facilities in each other's currencies.

These initiatives are subject to regulatory approval and must comply with relevant laws in both countries. Bangladesh Bank expressed its willingness to engage in further discussions with the MMA through a joint delegation, which would include officials from Bangladesh Bank and representatives from the Bangladesh Mission in the Maldives. The discussions would cover regulatory requirements, operational protocols, and settlement arrangements necessary for implementing these mechanisms.

According to recent data, the Maldives hosts more than 200,000 foreign workers, including over 100,000 Bangladeshis. Bangladesh Bank’s statistics show that remittances from the Maldives to Bangladesh declined by approximately 16.4% in the fiscal year 2025-26, totaling about $118 million, down from $141.1 million the previous year. In the current fiscal year, remittances reached $38.05 million so far.

The existing challenges stem from banks and foreign exchange houses in Bangladesh being reluctant to accept the Maldivian local currency directly. Consequently, Bangladeshi expatriates frequently resort to purchasing U.S. dollars on the informal market to remit funds, often incurring high commissions both when exchanging currency and when transferring money through formal channels. This situation results in financial losses for migrant workers, underscoring the need for improved mechanisms proposed by Bangladesh Bank.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.