Resort workers launch petition against plan to end dollar salaries

Tourism workers have launched a petition opposing plans to phase out salary payments in US dollars and shift wages to Maldivian rufiyaa as part of the Maldives Monetary Authority's (MMA) policy to increase the use of the local currency.

The Tourism Employees Association of Maldives (TEAM) launched the petition campaign on Friday, days after MMA Governor Ahmed Munawwar announced a target of moving domestic transactions to rufiyaa and ending foreign currency salary payments by 2030.

TEAM has called on resort employees to sign the petition, saying the campaign is intended to protect workers' pay and benefits.

The union has also invited tourism employees who are not TEAM members to contact it through its Facebook page to add their signatures to the petition.

Munawwar announced the policy on Monday as part of the central bank's plans to increase demand for the rufiyaa. He did not announce an implementation schedule for ending dollar salary payments.

The proposal has drawn opposition from employees in the tourism sector, where salaries and service charges are commonly paid partly or fully in US dollars.

“Salaries are currently paid in dollars — for example, at Trans Maldivian Airways (TMA) or across resorts. Therefore, dollar salary payments must undergo a change. That is how demand for the Maldivian rufiyaa will increase,” Munawwar said.

According to the Governor, foreign currencies account for more than 40 per cent of transactions within the domestic economy.

“If I hand someone dollars right now, they will naturally expect dollars. Monetary policy cannot be fully effective unless demand for the Maldivian rufiyaa is established,” Munawwar said.

“MMA's vision is to fully realise these changes by 2030.”

The petition comes amid changes to the country's foreign exchange regulations, including amendments passed by Parliament requiring resorts to convert 40 per cent of their monthly foreign currency revenue through the banking system.

TEAM has also opposed the 40 per cent conversion requirement. The union has argued that the foreign exchange shortage is the result of government policies and decisions and that tourism employees should not bear the financial impact of measures introduced to address the shortage.

The union has previously said it would oppose any measure that reduces the take-home income of resort workers or converts dollar-denominated salaries and service charges into rufiyaa unless workers are able to obtain US dollars through banks at the official exchange rate.

The official exchange rate is MVR 15.42 per US dollar, while the currency has been trading above MVR 22 in the parallel market.