New foreign currency rules will come into force on September 1, introducing revised dollar conversion requirements for tourism and other businesses while imposing significantly tougher penalties for selling foreign currency outside rates permitted by the Maldives Monetary Authority (MMA).
President Dr Mohamed Muizzu ratified the first amendment to the Foreign Currency Act after Parliament passed the government-sponsored bill on August 26, 2026.
The bill was submitted to Parliament by Holhudhoo MP Abdul Sattar Mohamed and introduces changes covering mandatory foreign currency conversion, licensed exchange businesses and the rates at which foreign currencies can legally be traded.
Under the amended law, foreign currency can only be bought or sold at a rate, or within an exchange-rate band, determined by the MMA.
Businesses providing foreign currency exchange services will also be required to hold a licence issued by the central bank.
The amendment introduces criminal penalties for individuals and businesses that sell, attempt to sell or advertise foreign currency at rates exceeding those permitted by the MMA.
Individuals convicted of such offences may be fined between MVR 25,000 and MVR 1 million, while companies and other legal entities could face fines ranging from MVR 100,000 to MVR 5 million.
The measures represent a significant tightening of enforcement against the informal foreign currency market, commonly referred to as the black market, where US dollars have historically been traded outside the official banking system.
Tourism businesses face revised conversion requirements
The amendment also changes the amount of foreign currency tourism establishments are required to convert through the banking system.
Category A tourism establishments will be required to convert 40 percent of their monthly gross sales into Maldivian rufiyaa.
The previous option allowing these establishments to meet their conversion obligation by exchanging USD 500 per tourist has been removed.
For Category B tourism establishments, the law provides two methods of meeting the conversion requirement. They must convert either USD 25 for each tourist arrival or 20 percent of monthly gross sales.
Foreign currency covered by the mandatory conversion rules must first be deposited into a foreign currency account held with a bank licensed by the MMA.
The required amount must then be converted through the banking system by the 28th day of the following month.
Threshold raised for non-tourism businesses
Changes have also been made to the requirements applying to businesses outside the tourism industry.
The annual foreign currency income threshold at which mandatory conversion requirements apply has been increased from USD 15 million to USD 25 million.
Non-tourism businesses earning more than USD 25 million annually in foreign currency will generally be required to convert 40 percent of their monthly gross sales through a bank.
However, the amendment establishes a substantially lower conversion requirement for businesses that are wholly Maldivian-owned, which will be required to convert seven percent of monthly gross sales.
The Foreign Currency Act was introduced as part of efforts to increase the amount of foreign currency entering the formal banking system and improve access to US dollars within the domestic economy.
Foreign currency availability has long been a major economic issue in the Maldives due to the country’s heavy dependence on imports and the significant amount of foreign currency generated by the tourism sector. Demand for dollars from businesses and individuals has also contributed to the development of a sizeable informal exchange market outside official banking channels.
The latest amendment revises several elements of that framework while strengthening the MMA’s authority over how foreign currencies are exchanged.
With the amendment taking effect on September 1, 2026, businesses falling within the affected categories will be required to comply with the revised conversion rules, while foreign currency traders will be subject to the newly established restrictions and penalties.
