AG defends MMA's authority on foreign exchange rules
Some legal professionals have questioned the MMA's authority to impose such directives on businesses.
Attorney General Ahmed Usham said on Tuesday that the Maldives Monetary Authority (MMA) has the legal authority to implement foreign exchange rules requiring tourist resorts and accommodation facilities to exchange a specific amount of dollars per tourist.
The rule, effective October 1, mandates:
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Resorts, city hotels, guesthouses, and safari vessels to exchange $500 per tourist.
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Hotels with 50 rooms or fewer to exchanger $25 per tourist.
Approximately 70 resorts have requested the MMA to reconsider the rule, citing challenges in meeting the specified dollar requirements. Additionally, some legal professionals have questioned the MMA's authority to impose such directives on businesses.
Responding to these concerns, Usham clarified that the MMA operates as an independent body. He stated that the Attorney General's Office had not provided legal advice to the central bank on formulating the rule. However, he confirmed that discussions had taken place with MMA Governor Ahmed Munawar regarding the regulation.
Usham emphasised that the MMA is empowered to take measures necessary to ensure adequate foreign exchange reserves. He expressed his view that the rule aligns with these powers and does not violate constitutional or legal boundaries.
"I don't think what they did was unconstitutional or illegal," Usham said.
President Mohamed Muizzu on Sunday announced plans to introduce a special law to regulate foreign currency transactions in the Maldives.
