The Parliament passed the Foreign Currency Bill today.
Parliament has passed the Foreign Currency Bill yesterday, which mandates businesses to exchange dollars entering the Maldives through Maldivian banks.
The bill was passed during Thursday's parliamentary sitting with 56 votes out of the 67 members who participated in the vote.
According to the bill, those required to deposit foreign currency income into a bank account and convert it include businesses in the tourism sector and entities earning a minimum of USD 15 million in revenue.
The bill states that "Category A" resorts have the option to either exchange USD 500 per tourist or 20 percent of their total monthly revenue in dollars. Under "Category B," guesthouses must exchange either USD 25 per tourist or 20 percent of their monthly foreign currency income.
The Maldives Monetary Authority (MMA) will determine the procedures for choosing between the two options outlined in the bill.
Although the Foreign Currency Bill passed, MMA had gazetted a foreign currency regulation last October. According to the bill passed by the Parliament, dollar conversion matters should proceed as per the previously published MMA regulation until the end of this month.
As such, resorts will have to exchange USD 500 per tourist for the months of October, November and December while guesthouses will be required to exchange USD 25 per tourist for the same period.
The Foreign Currency Bill will come into effect from January onwards after the President ratifies it.
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