Tourism sector converted $671 million through banks in 2025

Resorts and other tourism-related businesses exchanged more than US$600 million through the banking system last year following the implementation of the Maldives' foreign currency exchange regulation, according to the Maldives Monetary Authority (MMA).

The figures were published in the MMA’s 2025 Annual Report, which outlines the impact of the Foreign Exchange Management Regulation introduced in January 2025.

Under the regulation, businesses that generate foreign currency revenue are required to exchange part of their earnings through the formal banking system.

Resorts must exchange either US$500 per tourist arrival or 20 per cent of their revenue. Guesthouses, hotels and safari operators are required to exchange either US$25 per tourist or 20 per cent of their monthly foreign currency income. Businesses outside the tourism sector generating at least US$15 million annually in foreign currency revenue must also exchange 20 per cent of their monthly earnings.

Commercial banks are further required to sell 70 per cent of the foreign currency received through the mechanism to the MMA.

According to the report, 182 resorts have registered under the regulation and are currently participating in the exchange programme.

The MMA said that resorts, guesthouses and safari operators exchanged a total of US$671 million during 2025.

Of that amount, US$523.4 million, representing 78 per cent of the total, was sold by commercial banks to the central bank.

The MMA said the regulation contributed to an increase in foreign currency inflows to the central bank and supported the country's reserve position.

According to the report, the additional inflows enabled the MMA to increase the supply of foreign currency for banks and essential imports by 10 per cent during the year.

A total of US$1.1 billion was supplied for these purposes.

The report shows that foreign currency allocations were distributed as follows:

The MMA noted that the amount supplied to commercial banks increased by 29 per cent compared with the previous year.

The report also highlighted the use of Open Market Operations (OMOs) to absorb excess rufiyaa liquidity from the banking system.

Under this mechanism, the MMA sells long-term securities to commercial banks. When banks purchase these securities, rufiyaa liquidity in the banking system is reduced.

According to the report, the central bank absorbed MVR 3 billion through OMO transactions during 2025.

Despite these measures, the MMA noted that the overall volume of rufiyaa circulating within the banking system increased during the year.