MMA raises mandatory dollar conversion requirement to 90% for banks
Currently, banks are required to sell 60% of the foreign currency received from corporate clients—primarily tourism-related companies—to the MMA.
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The Maldives Monetary Authority (MMA) has announced a change in its foreign exchange policy, requiring banks to sell 90% of the US dollars exchanged by companies to the central authority starting next month.
Currently, banks are required to sell 60% of the foreign currency received from corporate clients—primarily tourism-related companies—to the MMA. This percentage will now increase to 90%.
In a statement issued Tuesday, the MMA stated that the decision was made to better facilitate the foreign exchange needs of businesses by enhancing the volume of foreign currency the MMA supplies to banks through its weekly sales.
The policy is in line with the Foreign Exchange Act, which mandates that companies, especially those in the tourism sector, convert a portion of their foreign currency earnings into Maldivian Rufiyaa at rates and amounts determined by the MMA.
