Maldives resorts exchange over $50m; reserves hike by 5% in Jan
The MMA acknowledged the tourism sector’s role in compliance.
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The Maldives Monetary Authority (MMA) on Monday reported a 5% increase in the country’s official reserves, reaching $708.1 million at the end of last month.
This follows resorts exchanging more than $50 million into Maldivian Rufiyaa under foreign exchange regulations introduced in October.
The MMA had earlier estimated that resorts would exchange approximately $40 million under the regulation.
According to official statistics:
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The Maldives’ official reserves stood at $708.1 million at the end of last month.
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This represents a 5% increase compared to reserves in December.
In a statement, the MMA attributed the rise to an increase in reserves exceeding expenditure in January.
Further data from the MMA indicates:
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Foreign exchange received by the government in the form of taxes and fees increased by 12% compared to December.
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The MMA received more foreign exchange under the foreign exchange regulations enacted in October.
By the end of last month, more than $50 million had been exchanged, with 90% of resorts depositing foreign currency into the banking system as required under the regulation. The MMA acknowledged the tourism sector’s role in compliance.
The regulations require resorts to exchange a portion of their revenue. Initially, industry stakeholders raised concerns, leading to a revision of the policy. Under the new Foreign Exchange Act, which took effect last month:
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Resorts must exchange either 20% of their income or $500 per tourist.
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Category B establishments, including guesthouses, safari vessels, and hotels, must exchange $25 per tourist per month or 20% of their monthly foreign exchange earnings.
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Tourist service providers and non-financial institutions that received at least $15 million in foreign currency in the past year must exchange 20% of their monthly foreign currency income.
