Governor Munawar said that no changes have been made, except for the drafting of a law to provide legal authority for the current regulation.
Central Bank, Maldives Monetary Authority (MMA) Governor Ahmed Munawar said today that there will be no relaxation of the regulation which requires resorts and guesthouses to exchange dollars through local banks. He said that efforts are currently underway to formalize the existing regulation into law.
MMA had opened a public comment period on the "Foreign Currency Bill" last night, sparking rumors that the dollar amounts required to be exchanged under the regulation might have been relaxed.
However, Munawar said that no changes have been made, except for the drafting of a law to provide legal authority for the current regulation.
During a press conference on the bill, a presentation detailed the categories and deposit requirements. Category A includes resorts, hotels, and tourist vessels, which must deposit USD 500 per guest every month in a local bank and Category B consists of guesthouses, which must deposit USD 25 per guest each month.
These figures are consistent with the existing regulation.
The bill introduces a new category to ensure fairness across the tourism sector. It stipulates that non-tourism entities generating foreign exchange equivalent to USD 20 million per year must deposit not more than 25 percent of their earnings into a Maldivian bank account.
Munawar added that this is the only new addition to the bill.
"No relaxations have been made. No changes, except for the inclusion of non-tourism entities, to be fair," Munavar said.
The governor clarified that many of the exemptions in the bill are already part of the existing regulations. Minor adjustments have been made in response to concerns raised by the tourism sector.
Exemptions include:
- Tourists staying for less than 24 hours
- Children under two years of age
- Guests staying for free or receiving complimentary accommodation
Additionally, the bill introduces a change that places tourist hotels with more or fewer than 50 beds into Category B, requiring them to exchange USD 25 per head. Tourist vessels registered abroad are exempt.
The bill also proposes penalties for violations of the dollar exchange requirements, with fines ranging from 0.05 percent to 0.10 percent of the total amount of dollars that were required to be exchanged, plus any additional days beyond the deadline for the deposit.
The Governor said that some have raised concerns saying despite the tourism sector generating around USD 4 billion annually, the state reserves have not significantly increased.
"It is the legal responsibility of MMA to increase reserves. We are doing that," he said.
Despite opposition from some major tourism businesses, who argue that the regulations are difficult to comply with, President Dr Mohamed Muizzu has previously stated that the regulations will remain unchanged.
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