President says forex law to hike travel dollar, card limit, TTs
He outlined a series of planned initiatives aimed at fostering broader access to foreign currency.
President Mohamed Muizzu announced on Wednesday new measures aimed at improving dollar circulation in the Maldivian economy and its benefits to the general public.
In a post on X, he outlined several initiatives and called for legislative changes to enhance enforcement mechanisms for foreign exchange management.
The Maldives Monetary Authority (MMA) has introduced a requirement for resorts to exchange $500 per guest into the banking system. However, over 70 resort operators have objected to it.
President Muizzu commended MMA's move, describing it as a step towards increasing dollar availability.
He also emphasised the importance of implementing a Foreign Exchange Act, reiterating his earlier call made on November 17. The proposed act would formalise enforcement mechanisms and strengthen dollar inflows from both the tourism and non-tourism sectors.
The president's comments come a day after MMA circulated a draft bill on foreign currency exchange to various stakeholders, seeking comments on its provisions, with the proposed legislation mandating that resorts still exchange $500 per tourist and guesthouses exchange $25 per guest, with certain exemptions.
The bill introduces a new category for businesses earning $20 million annually in foreign exchange. Such businesses would be required to deposit foreign currency earnings into a local bank account, with 25% of the revenue marked for conversion.
In his post on X, the president noted that the new measures would significantly enhance dollar liquidity in the banking system, benefiting the public and businesses. He outlined a series of planned initiatives aimed at fostering broader access to foreign currency:
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Increased airport departure contribution: The current $500 per Maldivian passenger departure contribution at Velana International Airport will be doubled to $1,000 starting in the first quarter of 2026.
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Improved dollar access for government entities: From July 2025, government-owned companies will receive dollars at the official rate, reducing reliance on the parallel market.
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Credit card limit adjustments: Credit card limits will be increased in the first quarter of 2026.
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Enhanced dollar allocation for trade: From July 2025, the proportion of dollars allocated to banks for telegraphic transfers (TT) to import goods will be increased, aiming to better support Maldivian businesses.
President Muizzu highlighted the potential for non-tourism sectors to contribute to dollar inflows, noting that sectors generating significant dollar income could further improve liquidity in the formal banking system.
He also expressed gratitude to Maldivians for their cooperation in advancing these efforts, underscoring his administration’s commitment to ensuring the benefits of these measures reach the general public and small and medium enterprises.
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