Fact Check: Is Temu Causing the Maldives' Dollar Crunch?

An examination of the factors contributing to the Maldives' foreign currency shortage. VERDICT: MISLEADINGTemu has become a frequent target in discussions about the Maldives' foreign currency shortage. While online shopping contributes to US dollar outflows, available evidence does not support the claim that Temu is the primary cause of the shortage.The Maldives' dollar shortage is rooted in a combination of structural factors, including external debt repayments, heavy dependence on imports, tourism-related foreign exchange leakages and ongoing pressure on foreign currency reserves.[1][4][5]The FactsIn June 2025, Bank of Maldives introduced a 30% transaction fee on purchases from Temu, Shein, Alibaba, AliExpress, Lazada and eBay, citing high volumes of US dollar transactions on these platforms and the need to support essential foreign payments.[2]According to reporting based on Bank of Maldives data, online shopping accounts for approximately 75% of foreign purchases made b… Read more