Committee approves amendment restricting news of unauthorised dollar rates

The Parliamentary Public Accounts Committee on Wednesday approved amendments to the Foreign Exchange Bill that would make it an offence to advertise or promote foreign currency exchange rates that exceed limits set by the Maldives Monetary Authority (MMA).

The amendments were adopted during a committee meeting held after parliament voted on Tuesday to return the bill for further review.

The Foreign Exchange Bill was originally introduced by Holhudhoo MP Abdul Sattar Mohamed on behalf of the government. The legislation seeks to amend existing foreign exchange rules, including the removal of the option allowing resorts to exchange a fixed amount of US$500 per tourist and replacing it with a requirement to exchange 20 per cent of monthly revenue.

After initially completing its review, the committee had submitted the bill to parliament. However, lawmakers later voted to recommit the legislation to the committee for additional amendments.

During Wednesday's meeting, the committee approved a provision making it an offence to advertise, promote or disseminate information relating to foreign currency transactions conducted at rates above those set by the central bank.

According to the amendment, "advertising and promoting" includes publishing, distributing or repeatedly sharing information through digital platforms or other publicly accessible means that encourage or publicise foreign currency buying and selling rates outside the limits established by the MMA.

Individuals found to have committed such an offence could face fines ranging from MVR 25,000 to MVR 500,000.

Where the information is published by a company or registered business, the proposed fines range from MVR 100,000 to MVR 5 million.

The amendments also introduce provisions governing foreign currency trading, requiring transactions to take place within the rates or bands published by the MMA.

Under another amendment approved by the committee, individuals or entities found selling foreign currency above the rates set by the MMA could face fines ranging from MVR 25,000 to MVR 1 million, depending on the nature of the offence.

The amendments were proposed by Funadhoo MP Mohamed Mamdhooh of the ruling People's National Congress (PNC).

Opposition members of the Maldivian Democratic Party (MDP) opposed the changes during the committee's deliberations.

Hulhumalé South MP Dr Ahmed Shamheed expressed concern that the amendments could affect media reporting and freedom of the press.

A significant portion of the committee meeting was conducted with microphones switched off, limiting public access to parts of the discussion.

The amendments come shortly after Minister of Economic Development Mohamed Saeed criticised media reports on movements in foreign currency exchange rates.

Earlier this month, Saeed argued that reports highlighting increases in black market dollar rates contributed to market instability.

“When that is done in a small economy like this, the blunt impact it causes becomes severe,” the minister said.

The bill will now proceed through the parliamentary process with the committee's proposed amendments.