Changes may upset some, but people's welfare comes first: President Muizzu

A Maldives Monetary Authority (MMA) regulation will be amended this week to require companies earning dollars in the Maldives to exchange those dollars through banks, President Dr Mohamed Muizzu said last night.

Speaking at a ruling People's National Congress (PNC) meeting, President Muizzu stated that the government had already consulted with the central bank on the amendments that they eish to implement.

President Muizzu said that the amendments aim to strengthen the retention of US dollars in the Maldives. These amendments will be brought to MMA Regulation and the Money Changers Regulation.

The President highlighted that companies earning foreign currency often resort to the black market to exchange dollars. However, with the revised MMA regulation, these companies will be mandated to conduct their currency exchanges through official banking channels.

Acknowledging that the changes might upset some, President Muizzu said that his main concern is the welfare of the people.

He also added that amendments to the MMA's regulations on foreign direct investment and business profit tax are planned, encouraging foreign investment income to be retained in local banks.

"These measures will help retain dollars in the Maldives for longer periods, which will also benefit the country. Money exchanges will be integrated with the banking system, allowing banks to monitor exchange rates more closely, preventing them from escalating too high," President Muizzu said.

He said that while these changes will take time to implement, significant challenges are expected once they are in place.

The government also plans to amend regulations to require companies earning income in dollars to pay import duties in dollars. Additionally, the pensions of employees working for these companies will also have to be paid in dollars.

"There will be those who are unhappy with these actions. It's impossible to please everyone. However, we will course our actions to benefit the people," the President said.