Government Rejects Calls to Ease Tourism Foreign Currency Exchange Requirements

Attorney General Ahmed Usham has confirmed that the government has no plans to further amend the Foreign Currency Act, despite calls to ease the exchange requirements for tourism businesses amid global economic uncertainty. Under current regulations, Category A tourism establishments are required to exchange 40 percent of their foreign currency revenue through the Maldivian banking system. This revised mandate becomes compulsory for tourism businesses starting in October. The decision to maintain this threshold follows extensive studies conducted by the Maldives Monetary Authority (MMA), the nation's central bank. Speaking at a press conference held at the President's Office, Attorney General Usham addressed questions regarding whether the state would lower the exchange percentage to shield the tourism sector from global economic disruptions. He emphasized that the increase to 40 percent was a necessary change based on MMA's data and that the administration currently has no intention of proposing further legislative changes. Beyond the exchange quota, the amended Act introduces stricter oversight of foreign currency flows. Certain entities—including tourism service providers and any party that earned at least USD 25 million in foreign currency during the previous calendar year—must now deposit their income into accounts at MMA-licensed banks and disclose these account details to the authority. To ensure market stability, the law now mandates that Category A establishments exchange 40 percent of their monthly total foreign currency income into Maldivian rufiyaa. Furthermore, all currency exchange businesses must operate under an MMA license, with the law outlining strict penalties for unlicensed operations or regulatory violations. The government is also cracking down on unofficial currency markets. It is now a criminal offense to sell or advertise US dollars at rates that deviate from the bands determined and published by the MMA. Any attempt to sell foreign currency outside these prescribed rates is strictly prohibited under the current legal framework.