Resorts in the Maldives will be required to exchange 20 percent of their monthly revenue through the banking system under proposed changes to the country’s foreign currency framework, removing the existing option of exchanging USD 500 for each tourist.
The Maldives Monetary Authority (MMA) has prepared amendments aimed at increasing the amount of foreign currency entering the domestic banking system, with the proposed changes now forwarded to the Attorney General’s Office for review.
Under the existing framework, tourist establishments classified as Category A can meet their foreign currency exchange obligation through one of two methods.
They can either exchange USD 500 per tourist or exchange 20 percent of their total monthly revenue through a bank.
The proposed amendment would remove the USD 500-per-tourist option entirely for Category A establishments, effectively requiring resorts to use the revenue-based calculation.
MMA expects the change to bring an additional USD 100 million into the banking system annually.
The proposed revision follows concerns that the fixed USD 500-per-tourist method does not necessarily reflect the level of foreign currency revenue generated by higher-end tourist establishments.
Luxury resorts can generate substantially more revenue per guest, meaning the fixed per-head calculation can result in a smaller proportion of their overall foreign currency earnings being exchanged through banks compared with the 20 percent revenue method.
The proposed changes are therefore intended to increase the amount of tourism-generated foreign currency flowing into the formal banking system.
Different requirements will continue to apply to guesthouses.
Tourist establishments classified under Category B will retain their existing options and will be able to exchange either USD 25 per tourist or 20 percent of their revenue.
No change is proposed to that arrangement.
The amendments also provide relief for some foreign currency-earning businesses outside the tourism industry.
Under the current Category C requirements, businesses earning more than USD 15 million are subject to mandatory foreign currency exchange obligations.
MMA plans to raise that threshold to USD 25 million, meaning businesses with annual revenue below the new threshold would no longer fall within the requirement on that basis.
An MMA official said the proposed amendments will be submitted to the People’s Majlis following their review by the Attorney General’s Office.
The changes form part of broader efforts by the government and central bank to increase the availability of US dollars through official banking channels.
Foreign currency availability remains particularly important to the Maldives because of the country’s heavy reliance on imported goods. Businesses require substantial amounts of foreign currency to import food, fuel, medicines, construction materials and other essential commodities.
Tourism, meanwhile, is the country’s largest source of foreign currency earnings, making the amount of tourism revenue entering the banking system a central component of the government’s foreign exchange policy.
The Maldives introduced a new foreign currency framework beginning in late 2024, requiring tourism businesses and other qualifying foreign currency earners to exchange a portion of their earnings through banks.
The Foreign Currency Act subsequently came into force in January 2025, establishing the country’s foreign currency exchange requirements in primary legislation.
The framework categorises businesses according to their activities and establishes different exchange requirements depending on the category under which they fall.
MMA has continued to adjust its foreign exchange policies as it works to increase dollar availability within the formal financial system.
The central bank recently increased its weekly US dollar allocation to commercial banks by 51 percent for a three-week period, following earlier increases of 32 percent ahead of Ramadan and 26 percent in June.
The latest proposed amendments approach the issue from the other side of the foreign exchange market by seeking to increase the amount of tourism-generated dollars entering banks.
If approved by Parliament, resorts currently using the USD 500-per-tourist method would instead be required to exchange 20 percent of their monthly revenue.
MMA estimates that the change alone could add approximately USD 100 million a year to foreign currency flows through the banking system.
