Bangladesh Bank (BB) is exploring the possibility of opening branches of Bangladeshi banks in the Maldives and introducing alternative currency settlement arrangements to facilitate remittance transfers by expatriate workers through formal channels.
"We are trying to open branches of Bangladeshi banks in the Maldives to ensure that remittances come through formal channels," a senior BB official told BSS.
The official said Bangladesh Bank Governor Md Mostaqur Rahman has already sent a letter to Ahmed Munawar, governor of the Maldives Monetary Authority (MMA), seeking cooperation to facilitate remittance transfers and improve banking services for Bangladeshi migrant workers.
"We are waiting for a reply," the official said.
Bangladesh Bank recently held an online meeting with the Bangladesh mission in the Maldives to discuss the initiative, including the possibility of establishing branches of Bangladeshi banks and strengthening formal channels for sending workers' earnings home.
Some private commercial banks in Bangladesh, including BRAC Bank and National Bank, have conducted feasibility studies on establishing branches in the Maldives, the official said.
Banks from Sri Lanka, Pakistan and India already operate branches in the Maldives, providing a potential reference for Bangladesh's efforts to expand its banking presence in the country.
The proposed expansion of Bangladeshi banks into the Maldives is expected to improve expatriates' access to banking services and make it easier for them to transfer their earnings to Bangladesh through authorised channels.
However, establishing branches would require the necessary regulatory approvals and cooperation between the relevant authorities in both countries.
According to Bangladesh Bank's country-wise remittance data, Bangladesh received around $118 million from the Maldives in fiscal year 2025-26, down from $141.1 million in FY25, representing a year-on-year decline of approximately 16.4 percent.
Bangladesh Bank data also showed that Bangladesh received $38.05 million in remittances from the Maldives during the first three months of the current fiscal year.
The decline in remittance inflows and the difficulties expatriates face in transferring their earnings have prompted the central bank to explore measures to make formal remittance services more accessible, affordable and efficient.
Alongside exploring the establishment of bank branches, Bangladesh Bank has proposed three mechanisms to facilitate remittance transfers from the Maldives.
In a letter dated October 8 to the MMA governor, Bangladesh Bank Governor Md Mostaqur Rahman proposed cooperation between the two monetary authorities to establish safe, efficient, transparent and cost-effective mechanisms for transferring Bangladeshi workers' earnings through formal banking channels.
The first proposal involves exploring the use of the Maldivian rufiyaa through an appropriate arrangement under the Asian Clearing Union (ACU).
Under the proposed mechanism, beneficiaries in Bangladesh would receive the equivalent funds in taka through authorised dealer banks.