By Malé, Maldives — Central Bank Governor Ahmed Munawwar affirmed today that there will be no concessions on the requirement for banks to market dollars received by resorts and guest houses, stating that the existing rules will now be strengthened by law.
The Maldives Monetary Authority (MMA) recently opened public comments on the proposed Foreign Exchange Bill, sparking speculation about potential easing of dollar-marking regulations. Addressing the rumors, Governor Munawwar clarified that the bill primarily codifies existing rules while introducing a few adjustments to ensure fairness within the tourism and non-tourism sectors.
“No concessions have been made. No changes have been made except the inclusion of non-tourism entities to be fair,” said Munawwar.
Key Provisions of the Bill:
- Dollar-Mark Requirements:
- Category A resorts, hotels, and tourist vessels must exchange $500 per tourist per head at a bank in the Maldives.
- Category B guest houses must deposit $25 per tourist per month into a local bank account.
- Non-Tourism Entities:
- Entities earning foreign exchange equivalent to $20 million annually must deposit up to 25% of their earnings into a Maldives bank account.
- Exemptions:
- Tourists staying less than 24 hours.
- Children under two years of age.
- Complimentary accommodations.
- Tourist Hotels with Fewer than 50 Beds:
- Reclassified under Category B, requiring a deposit rate of $25 per head.
- Penalties for Non-Compliance:
- Fines ranging from 0.05% to 0.10% of the unmarked amount per day of delay.
The Governor highlighted that the MMA is addressing concerns expressed by tourism stakeholders but emphasized the central bank’s legal mandate to bolster the country’s foreign reserves. He dismissed criticisms from major tourism businesses that claimed the rules were unworkable.