The Maldives Monetary Authority (MMA) reports that by the end of January, resorts have exchanged over $50 million through local banks, surpassing initial projections by $10 million. Compliance has been exemplary, with 90% of resorts adhering to the new requirements during this period.
The Foreign Currency Act categorizes businesses into three groups with specific conversion obligations:
Category A: Resorts and similar establishments must convert either $500 per tourist per month or 20% of their gross monthly foreign currency sales.
Category B: Tourist hotels, guesthouses, and vessels are required to convert $25 per tourist per month or 20% of their gross monthly foreign currency sales.
Category C: Non-tourism businesses with annual foreign currency earnings exceeding $15 million must convert 20% of their monthly foreign currency income.
The MMA has observed a 5% increase in the official reserve at the end of January compared to December, with reserves now standing at $708.1 million. Additionally, foreign currency revenue from taxes and various fees in January has risen by 12% compared to the previous month.
President Muizzu has indicated that with the proper implementation of the Foreign Currency Act, the current dollar limit set for bank cards can be increased to $1,400 in the second quarter of the next year. Furthermore, the $500 allocated to each Maldivian traveling abroad is set to double in the next year first quarter, enhancing financial flexibility for citizens.
This proactive approach underscores the President Dr. Mohamed Muizzu’s administration’s commitment to fiscal stability and economic growth, ensuring that the Maldives remains resilient in the face of global financial challenges.
