President Dr Mohamed Muizzu has stated last night that no changes will be brought to the forex regulations that require resorts to exchange USD 500 per guest at a local bank.
President Dr Mohamed Muizzu has stated last night that no changes will be brought to the forex regulations that require resorts to exchange USD 500 per guest at a local bank. He stated that exchange of dollars at local banks bring significant benefits to the Maldives' economy.
At a ceremony held last night at the Social Centre to mark one year since this administration came to office, the President reiterated several times that there will be no changes to this forex regulation.
"I will not change the regulation. I am stating this very clearly, I will not change the regulation," he asserted to applause from the audience.
The President said that in 2023 alone, the tourism sector had earned revenues of USD 4.5 billion. However, only 1.5 percent of this had been exchanged in local banks. The new regulations will see an increase of 20 to 25 percent in this figure, he said.
According to the President, implementation of the regulations set by MMA would present several benefits. These include:
1. SOEs being able to buy dollars at the official rate instead of black market rates. He said that this can be commenced latest by July next year
2. Dollar sale allocation for passengers flying abroad via Velana International Airport can be raised from USD 500 to USD 1000. This can be achieved in the first quarter of 2026
3. Credit card limits can be raised from USD 700 to USD 1400
4. Dollar issuance for TTs can be raised. This can be implemented from July next year
"Businesses will see immense improvement. This is why I am asserting that we stand by the people. I am not going to change this regulation. I will not change it. I am clearly announcing that I will not change the regulation," the President declared.
"They must exchange USD 500. Abiding by regulations is compulsory on everyone. This will have to be done. This is being implemented in accordance with the Constitution, in line with the laws."
The President went on to say that a law will also be placed in effect to further ease MMA in requiring dollar exchanges at local banks.
"This administration will be 100 percent with the people. There is no question about it."
President Muizzu said that the regulation had been drafted based on technical research.
In his speech, he recognized the contributions of tourism pioneers and extended gratitude for their service. He, however, appealed to them to not allow political actors to take undue advantage of them.
"Do not allow political actors who are not on the side of the people to take undue advantage of you. We are with the people. It is in the best interests of the nation for seniors who do much for the nation such as you to work alongside us," he said.
While the President has asserted that there will be no changes to the tourism forex regulations, tourism industry leaders such as Champa Brothers' Chairman 'Champa' Mohamed Moosa (Uhchu) and Universal Enterprises Chairman Mohamed Umar Manik (MU Manik) have sent letters stating the regulations cannot be complied with.
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