MMA Shortens Foreign Currency Exchange Deadline to Boost Local Currency Liquidity

The Maldives Monetary Authority (MMA) has significantly tightened the deadlines for exchanging foreign currency into Maldivian Rufiyaa, amending the requirements under the Foreign Currency Act to accelerate the flow of funds into the local economy. Under the previous regulations, entities were required to exchange their foreign currency earnings through an MMA-registered bank by the 28th day of the third month following the income's receipt. The new amendment drastically reduces this window, mandating that earnings now be exchanged by the 28th of the very next month. To illustrate the impact of this change, foreign currency earned during the month of September must now be converted by October 28, rather than the previous deadline of December 28. This shift ensures a faster turnaround of foreign reserves within the domestic banking system. As part of the updated rules, the central bank requires all relevant financial obligations relating to these foreign exchange transactions to be reported directly to the authority. This move coincides with recent legislative changes to the Foreign Currency Act, which specifically mandate that tourist resorts exchange 40 percent of their monthly US dollar earnings with banks operating in the Maldives. While the deadlines have become more stringent, the MMA retains the authority to grant concessions for specific foreign exchange arrangements. These discretionary powers exist alongside the formal exemptions already outlined within the law, allowing the central bank to maintain flexibility for certain economic sectors while enforcing stricter discipline across the broader market.