New Forex Rules Mandate Resorts Convert 40% of Earnings to Stabilize Economy

Attorney General Ahmed Usham has expressed confidence that recent amendments to the nation's foreign exchange regulations will generate positive economic shifts within the next month, offering a strategic response to the Maldives' persistent foreign currency challenges. The revised Foreign Exchange General Regulations, which officially came into effect on September 1, introduce a critical mandate for the tourism sector. Resorts operating in the Maldives are now legally required to convert 40 percent of their monthly foreign currency earnings through a registered domestic commercial bank. Speaking at a press conference at the President’s Office, Attorney General Usham clarified the implementation timeline for these measures. He noted that while the legal framework took effect in September, the mandatory conversion of earnings will begin on October 1. Usham anticipates that this influx of foreign currency into the formal banking system will produce tangible results shortly after the deadline. Beyond the conversion requirements, the Attorney General announced a rigorous crackdown on unauthorized financial activities. He warned that operating currency exchange services without an official license or registration from the Maldives Monetary Authority (MMA) is illegal. Furthermore, selling US dollars at rates that deviate from those officially set by the MMA is now a target for decisive legal action. This regulatory overhaul is part of a broader, multi-agency effort to dismantle the parallel foreign currency black market. In this informal sector, US dollars are frequently traded at rates significantly higher than the official peg, creating economic instability and disadvantaging local businesses. Concluding his briefing, Attorney General Usham urged the business community to cooperate fully with the state. He emphasized that strict adherence to the Foreign Exchange Act and the MMA Act is essential to ensure that all currency transactions remain transparent, legal, and supportive of the national economy.