By President Dr. Mohamed Muizzu has firmly stated that the rules requiring banks to exchange dollars earned through the tourism sector will not be changed, emphasizing the significant economic benefits they will bring. Speaking at a ceremony held at the Social Centre tonight, President Muizzu reiterated his commitment to upholding these regulations, which are aligned with the Constitution and existing laws.
Unwavering Commitment to Rules
“I will not change the rules. I have made this very clear,” the President declared, addressing concerns from some quarters. Highlighting the $4.5 billion revenue generated by the tourism sector last year, he pointed out that only 1.5% of this amount was processed through local banks. Under the new rule, banks will handle a larger share of these transactions, increasing to 15–20%.
The President outlined several key benefits of the new rules, which require resorts to exchange dollars with local banks through the Maldives Monetary Authority (MMA):
- Fair Dollar Transactions: Government-owned companies will begin purchasing dollars at the official rate instead of relying on the black market. This change is expected to be fully implemented by July 2025.
- Increased Airport Revenue: Each departing Maldivian passenger at Velana International Airport will be given $1,000, up from the current $500 at the bank rate. The new rate will be enforced in the first quarter of 2026.
- Higher Credit Card Limits: The credit card limit will double from $700 to $1,400, facilitating international transactions for businesses and individuals.
- Support for Businesses: A larger proportion of dollars will be allocated for telegraphic transfers (TT), starting from July 2025.
Supporting the People and the Economy
President Muizzu emphasized that these measures are designed to bolster the Maldivian economy and prioritize the needs of its citizens. “Businesses will receive a significant boost, and this government will always stand with the people,” he said. He also announced plans to pass a special law enabling the MMA to streamline dollar exchanges with local banks.
The President criticized political figures who oppose these regulations for prioritizing personal gain over national interests. He urged resort owners and stakeholders to align with the government in supporting this initiative, which has been shaped by technical studies and consultations with the tourism industry.
Categorizing Compliance
The new central bank regulations, issued last month, categorize tourism establishments into two groups:
- Category A: Resorts, hotels, and tourist vessels must deposit $500 per tourist in a local bank.
- Category B: Guest houses are required to deposit $25 per tourist per month in a bank.
Despite some resistance from major industry figures like Universal Chairman Mohamed Umar Manik and Champa Brothers Chairman Mohamed Moosa, President Muizzu remained resolute. “These rules are in the best interest of the nation, and everyone must comply,” he said.
A People-First Government
“This government will stand with the people, 100 percent,” the President affirmed. He praised the pioneers of Maldivian tourism but urged them not to exploit their position for political or personal gain. “We are here, on the side of the people, working for the prosperity of our nation,” he concluded.
President Muizzu’s firm stance underscores his administration’s dedication to economic reforms that prioritize the welfare of the Maldivian people, even in the face of resistance from powerful stakeholders.