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

An examination of the factors contributing to the Maldives' foreign currency shortage.

VERDICT: MISLEADING

Temu 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 Facts

In 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 by BML customers. The same report states that Temu generates roughly US$7 million in monthly transactions and that the six targeted platforms account for about one-third of all e-commerce spending.[3]

These figures indicate that online shopping is a meaningful source of foreign currency outflows.

However, reports examining the broader economy consistently identify larger sources of dollar demand:

• Government debt repayments denominated in US dollars.[1][4]
• The country's reliance on imported food, fuel, medicines and consumer goods.[4][5]
• Tourism earnings that do not fully enter the domestic banking system.[1]
• Rising demand for foreign currency for healthcare, education and essential imports.[5]

Comparing the Drivers

Methodology: This chart is an editorial illustration based on recurring factors identified in reporting by Bank of Maldives, the Maldives Monetary Authority, Corporate Maldives and Maldives Independent. It does not represent official percentages or measured economic shares. The visualization is intended to compare the relative prominence of factors cited across available evidence.

Bottom Line

Temu is part of the story, but it is not the whole story.

The available evidence suggests that online shopping increases demand for scarce US dollars and has become significant enough to prompt regulatory action. However, the Maldives' foreign currency shortage appears to be primarily driven by broader structural pressures, including debt obligations, import dependence, foreign exchange leakages and reserve constraints.[1][4][5]

Attributing the shortage mainly to Temu oversimplifies a much more complex economic challenge.

Endnotes

1. Corporate Maldives, Report: Key Reasons Behind Maldives' Dollar Shortage Amidst Tourism Boom. Available at: Corporate Maldives
2. Bank of Maldives, Bank of Maldives Increases Monthly Foreign Transaction Limit to USD 500. Available at: Bank of Maldives
3. Maldives Independent, Why the Maldives Hit Chinese Shopping Sites With a 30 Percent Fee. Available at: Maldives Independent
4. Maldives Independent, Maldives Dollar Crisis Deepens Amid Rising Oil Prices and Debt Pressures. Available at: Maldives Independent
5. The Standard Maldives, MMA to Increase Dollar Supply to Banks by 25% During Tourism Off-Season. Available at: The Standard Maldives