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Maldives Dollar Crisis: 7,000 Keralaites Hit by Harsh Remittance Cuts

Thousands of Keralaites working in the Maldives are facing severe financial hardship due to new remittance restrictions. The monthly dollar transfer limit has been drastically cut from $500 to just $150 per person. This amount is insufficient for workers to support families back home or repay employment-related loans. The restrictions come as the Maldives faces its own financial crisis, creating a perfect storm for expatriate workers.

Key Points: Maldives Caps Dollar Remittances for Kerala Workers at $150

  • Monthly remittance cap reduced from $500 to just $150 per worker
  • Affects doctors, nurses, teachers and tourism professionals
  • Amount equals approximately Rs 13,000 for family support
  • Maldives facing financial crisis similar to India's 1990 situation
2 min read

Maldives: Keralaites hit by fresh dollar remittance restrictions

7,000 Keralaites in Maldives face financial crisis as monthly dollar remittance limit slashed from $500 to just $150, impacting family support and debt repayments.

"This is going to be a huge crisis for people like me. We have families to support and debts to repay. - Keralaite worker in Maldives"

Thiruvananthapuram, Oct 20

Around 7,000 Keralaites working in the Maldives are facing a financial crisis following fresh restrictions imposed by the Maldives Monetary Authority (MMA) on dollar remittances.

The new cap limits monthly transfers to just USD 150, significantly impacting expatriates who earn in Maldivian Rufiyaa (MVR). Previously, the remittance ceiling was USD 700, later reduced to USD 500, and now drastically cut to USD 150 — approximately Rs 13,000. Many workers say this amount is insufficient to support families back home or repay loans taken to secure employment in the archipelago.

“This is going to be a huge crisis for people like me,” said a Keralaite employed in the Maldives. “We have families to support and debts to repay. With just Rs 13,000 allowed for remittance, our situation is dire.”

The affected workforce includes professionals in healthcare — doctors, nurses, paramedics — as well as teachers and tourism sector employees.

Economist Mary George noted that the Bank of Maldives, the country’s monetary authority, is facing a severe downturn. “Maldives is currently in a financial situation similar to India’s 1990 crisis. Unlike India, which leveraged its gold reserves, the Maldives lacks such options,” she said.

The remittance restrictions have triggered widespread concern among the expatriate community, many of whom fear long-term financial instability if the policy continues.

- IANS

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Reader Comments

P
Priya S
As someone whose cousin works in Maldives as a nurse, this news is very worrying. Many families in Kerala depend entirely on these remittances. The sudden reduction from $700 to $150 is too drastic. Hope the authorities reconsider this decision.
M
Michael C
While I sympathize with the workers, we must also understand that Maldives is facing its own economic crisis. The comparison to India's 1990 situation is telling. Sometimes tough decisions are necessary for national economic stability.
S
Shreya B
Many of these workers took huge loans to get these jobs abroad. Now with such low remittance limits, how will they repay? This could lead to serious debt traps. The Kerala government should create emergency support systems for affected families.
A
Arjun K
This shows why we need to create better employment opportunities within India itself. Our skilled professionals shouldn't have to face such uncertainties abroad. Make in India should focus on healthcare and education sectors too! 💪
K
Kavya N
The timing couldn't be worse with festival season approaching. Many families were counting on these remittances for Diwali expenses. Hope the Indian embassy can negotiate some temporary relief for our citizens. 🙏

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