A decision has been made to amend the Foreign Exchange Act to raise the mandatory foreign currency surrender requirement for resorts from the proposed 20 percent to 40 percent of revenue, while shortening the compliance window to a monthly basis.

Speaking at a press conference held at the President's Office today, Maldives Monetary Authority (MMA) Governor Ahmed Munawar announced three key measures aimed at boosting US dollar inflows into the formal financial system:

  • Amending the Foreign Exchange Act to increase the proposed foreign currency conversion quota for resorts from 20 percent to 40 percent of revenue.
  • Amending the Foreign Exchange Act to require resorts to complete foreign currency conversions every month rather than every three months.
  • Establishing oversight mechanisms to track and monitor foreign currency spending by dollar-earning businesses.

Munawar noted that entities earning revenue in US dollars have been exchanging funds on the black market.

The Governor further highlighted that increasing the dollar surrender rate to 40 percent will expand the volume of foreign exchange the MMA can disburse to commercial banks, thereby enabling banks to increase their US dollar allocations for Telegraphic Transfers (TTs).