People's National Congress (PNC) Parliamentary Group Leader Ibrahim Falah has responded to former President Abdulla Yameen's call to resorts last night to not accept amendment to the Foreign Currency Act, where 40 percent of the revenue generated in foreign currency by resorts and guesthouses is to be exchanged at banks every month.
Yameen said that he does not believe exchanging 40 percent USD revenue should be made into a requirement and that this is not only being said by the Maldives Association of Tourism Industry (MATI). He said that the tourism industry will be the first to be negatively affected by this and that all resorts must be able to say that they are against it.
In regards to Yameen's statement, Falah posted on X which reads that Yameen's call to action is "inviting crime". He described it as violating Maldivian law.
Falah also said that Yameen's "greed and jealousy" are clear from his words.
"Yameen's recent efforts with the Maldivian Democratic Party (MDP) to overthrow the government shows that his words and his actions do not match. It is both saddening and embarrassing to the nation that a traitor such as Yameen can sit in his home," said Falah.
"If the government recovers the millions of dollars that Yameen stole from the state, the USD crisis will be solved immediately."
The bill where businesses that generate revenue in foreign currencies have to exchange their earning that will see their category raised was submitted on behalf of the government by Holhudhoo Constituency MP Abdul Sattar Mohamed, with Funadhoo Constituency MP Mohamed Mamdhooh submitting an amendment that makes it mandatory for Category "A" businesses (resorts) to exchange 40 percent of their total revenue at banks.
As per the bill, the stated businesses will have to exchange 40 percent of their total revenue at banks from 1st September onwards.
Governor of the Maldives Monetary Authority (MMA) Ahmed Munawar stated that the only way the issue where Maldivian businesses are not getting the required USD for importing goods can be solved is by those who generate their income in USD exchanging their USD at Maldivian banks.
Munawar also said that 56 percent of the USD that has been exchanged from parties that generate revenue in USD to the MMA up until last month has been used to repay state debts.
Before the amendment was passed, the Maldives Association of Tourism Industry (MATI) stated that exchanging 40 percent of their USD revenue is not something they can do as resorts rely quite heavily on USD to provide services and other matters.
In a statement written by MATI, they said that exchanging 40 percent of their USD revenue is not a viable amount for the industry as resorts use USD to pay salaries, service charges, taxes (Tourism Goods and Services Tax (TGST), Green Tax, Withholding Tax and Income Tax), rent and loans that need to be paid in foreign currency.
Even if a government investigation has alleged that some resort operators have conducted illegal transactions which facilitates foreign currency prices rising on the black market, MATI said that they have not received any information regarding such an activity. The statement also reads that MATI has always urged all resort operators to fully comply with laws and regulations.
