Yameen vows to repeal MMA dollar exchange rule if re-elected

Former President Abdulla Yameen said on Sunday that the rule requiring large businesses, including tourist resorts, to exchange foreign currency to Maldivian Rufiyaa through the Maldives Monetary Authority (MMA) is unlawful. He stated that if he returned to power, the rule would be revoked.

The MMA introduced a foreign exchange regulation in October last year to manage foreign currency transactions in the Maldives. A separate rule governing money-changing businesses was also issued.

Under the regulation, businesses earning foreign currency are required to convert a specified portion of their income into Maldivian Rufiyaa within a set period. The MMA has also directed banks to sell foreign currency to the Authority in amounts determined by it.

Following the rule’s implementation, some resort employees have started receiving their salaries in Maldivian Rufiyaa.

During a rally organised by the People’s National Front (PNF) on Sunday, a resort employee raised concerns about being paid in local currency. He asked Yameen whether the rule could be repealed if he returned to office, saying that the measure had reduced the value of workers’ earnings.

He claimed that resort employees were losing up to MVR 10,000 due to the regulation, adding that workers who supported the current government were now facing difficulties as a result.

In response, Yameen said resolving the issue would take time but maintained that the rule imposed by the MMA was unlawful and should be withdrawn.

“Resort employees’ earnings cannot be taken from them. It is their money. If the government wants to buy dollars, it should do so at the market rate,” Yameen said.

He added that the same foreign currency income could be used by resorts to pay staff salaries and allowances, instead of being converted under compulsion.