By In a landmark move to tackle the Maldives’ ongoing dollar shortage and strengthen the nation’s financial stability, President Dr. Mohamed Muizzu has overseen the implementation of a new regulation by the Maldives Monetary Authority (MMA). Effective from today, this regulation requires businesses in the tourism sector to convert a portion of their foreign currency revenues into local banks, a decisive step that demonstrates President Muizzu’s commitment to resolving the country’s currency crisis.
The regulation mandates that all businesses selling goods and providing services in the tourism industry must transfer or deposit their monthly foreign currency earnings into a foreign currency account at a bank within a specified period. This new policy ensures that a steady flow of foreign currency is routed through the banking system, enhancing the nation’s foreign exchange reserves.
Under the regulation, major tourism establishments—such as resorts, hotels, and tourist vessels—are required to convert $500 per tourist into Maldivian rufiyaa each month. Guesthouses and smaller hotels in inhabited islands must convert $25 per tourist. By ensuring that businesses deposit a portion of their foreign currency earnings, this regulation is designed to alleviate the dollar shortage that has been a persistent challenge for the country.
President Muizzu’s administration has emphasized the importance of regulating foreign currency flows to prevent further economic disruptions. This move is expected to provide much-needed liquidity to the Maldivian economy and stabilize the exchange rate, ensuring that businesses and individuals have better access to US dollars and other foreign currencies.
In a display of transparency and accountability, the regulation also requires banks to sell 60% of the foreign currency they receive to the MMA each week, providing a consistent supply of dollars to the financial system. Moreover, tourism establishments must report details of their currency conversions to the MMA monthly, ensuring strict compliance and monitoring.
President Muizzu’s leadership in implementing this policy underscores his administration’s dedication to resolving the financial challenges facing the Maldives. By ensuring that foreign currency is systematically managed and converted into the local banking system, the government is taking firm steps toward restoring economic confidence and securing the nation’s financial future.
This move is seen as a positive and much-needed intervention, as the tourism sector remains the backbone of the Maldivian economy. President Muizzu’s swift action reflects his focus on long-term solutions, reinforcing his administration’s commitment to building a resilient and sustainable economy for the Maldives.