President highlights success of forex rules as resorts exchange $25m

President Mohamed Muizzu on Wednesday announced that resorts have exchanged approximately $25 million under the Maldives Monetary Authority’s (MMA) foreign exchange rules.

Speaking at a gathering in HA. Hoarafushi, the President expressed satisfaction with the cooperation from the resort sector, stating that most resorts are complying with the new regulations.

Under the MMA's foreign exchange rules, resorts are required to exchange $500 per tourist. When the regulation was initially introduced in October, resort owners voiced serious concerns, fearing the requirement would be difficult to meet.

However, following a new Foreign Currency Act in January—allowing resorts to exchange either $500 per tourist or 20% of their income—compliance has improved.

“The Governor of the MMA, Ahmed Munawwar, updated me last Monday, and the data shows that resorts have exchanged around $25 million so far. Apart from a few, the majority are following the law,” the President stated.

The President reiterated that this regulation is designed to benefit the Maldivian public, especially students studying abroad and small and medium-sized businesses that rely on access to foreign currency.

“This law ensures that the availability of dollars improves for local businessmen, students, and the public. It is an initiative for the people,” he emphasized.

Additionally, the President outlined upcoming measures that will further strengthen the country’s foreign exchange framework:

The MMA estimates that resort revenue will reach $40 million by October.

The new law also extends beyond resorts. Guesthouses, safaris, and hotels under Category B are required to exchange $25 per tourist or 20% of their foreign exchange earnings. Additionally, businesses outside the financial sector that generate foreign exchange must also contribute a portion of their earnings.