Dollar exchange policies important to be enshrined into law: President

It is very important to enshrine the policies implemented by Maldives Monetary Authority (MMA) requiring resorts to exchange USD 500 per tourist who visits local resorts into law, said President Dr Mohamed Muizzu.

Last night, central bank MMA opened public consultations on the foreign currency bill drafted by the authority.

Referring to the bill, President Muizzu said today in a post on X (formerly Twitter) that it is "very good" that the bill requires the exchange of USD 500, and thanked MMA for it.

"It is important that MMA initiates a foreign currency law to strengthen enforcement of regulations. Because of this law, USD 500 will be exchanged per every tourist that visits resorts," he said.

He also said that the bill also includes requiring non-tourism businesses to also exchange foreign currency if they meet a certain threshold, and added that this would further increase the amount of dollars circulating through the banking system.

President Muizzu said these amendments to the law would increase accessibility of dollars to small and medium enterprises. He further said that from July 2025 onwards, state owned enterprises would be able to get dollars without reaching out to the parallel market.

Additionally, the following changes are also expected:

- USD 1,000 can be bought by all Maldivians travelling out of Velana International Airport (VIA) starting from the first quarter of 2026

- Credit card limits will be increased from the first quarter of 2026 onwards

- Increased dollar allowances for telegraphic transfers (TTs) for businesses to import goods

Governor Ahmed Munawwar, speaking at an MMA press conference recently, said that other than empowering the regulations with a law, no further leniency would be given regarding the matter.

Presenting the new bill to journalists at the press conference, Governor Munawwar said that resorts, hotels and tourist vessels in category A would require USD 500 to be exchanged via local banks for each tourist that visits the facility. Facilities in category B would be required to exchange USD 25 per tourist each month.

These figures are also included in the existing regulations.

Munawwar said that the bill also includes an additional category, to be fair to those involved in the tourism section.

The bill requires non-tourism businesses to also deposit at least 25 percent of their foreign currency earnings in a local bank, if the income meets USD 20 million per year.