President Dr Mohamed Muizzu has said the Government’s measures to address the country’s foreign exchange shortage are based on extensive studies and technical advice, and have broad public support.

Speaking on the State Media’s Nation Chat programme, President Dr Muizzu said the reforms were necessary to improve the country’s economic situation, particularly the foreign exchange shortage, despite political criticism from some quarters.

The Government has begun implementing several measures to strengthen foreign exchange management, including amendments to relevant laws. Parliament has approved increasing the portion of foreign currency that resorts must exchange from 20 per cent to 40 per cent.

Measures have also been introduced to impose heavier fines on black-market dollar traders and those who publish related claims in the media. Amendments have also been made to allow certain taxes to be collected in US dollars and increase some existing tax rates.

In addition, foreign workers in the Maldives will be required to have their salaries paid through local bank accounts. The Maldives Monetary Authority (MMA) has set a target of completely ending salary payments in US dollars in the Maldives by 2030.

President Dr Muizzu said the Government was not making these decisions hastily. He said the measures were based on evidence gathered through months of consultations, technical evaluations and studies of practices adopted by other countries.

He stressed that the Government would not take any action that could harm the national economy and said the positive economic impact of the measures would outweigh political criticism.