The Foreign Currency Act has been officially implemented today, requiring businesses in the Maldives to convert dollars through local banks. This regulation affects businesses in the tourism industry and those with an annual income of at least 15 million dollars, mandating them to deposit foreign currency earnings into bank accounts for conversion.
For resorts classified under “Category A” they are required to convert either $500 per tourist or 20 percent of their total monthly dollar income. Meanwhile, “Category B” guesthouses must convert either $25 per tourist or the same percentage of their monthly dollar earnings. The Maldives Monetary Authority (MMA) has laid out guidelines to help these entities decide between the conversion options.
Additionally, the percentage of dollars designated for Telegraphic Transfer (TT) is set to increase starting July next year. During a ceremony on November 17 last year, marking the government’s first anniversary, President Muizzu affirmed his commitment to this regulation, stating, “Businesses will experience substantial progress. I am resolute in my decision not to alter this regulation.”
