President Mohamed Muizzu has reaffirmed that his administration will not alter the regulation requiring tourism businesses to deposit and convert a significant portion of their foreign exchange earnings through local banks. The announcement was made during an event at the Social Centre, marking the government’s one-year anniversary.
Addressing concerns from resort owners who have opposed the rule, which mandates that resorts exchange USD 500 per tourist at a local bank, President Muizzu was unequivocal. “I will not change the rule; I have made it clear that I will not,” he declared. “Everyone must comply with the regulation. It is in accordance with the constitution and the laws.”
In an effort to further support the Maldives Monetary Authority (MMA) in implementing this policy, the president revealed plans to introduce a dedicated Forex Act. The new legislation is expected to enhance the MMA’s ability to manage foreign exchange controls more effectively.
During his speech, President Muizzu also took a moment to acknowledge the contributions of the country’s tourism industry pioneers, expressing appreciation for their role in developing the sector. “Their services remain essential for the country. I urge others in the industry to follow their example and continue contributing to the development of tourism,” he stated.
The president cautioned against allowing political influences to disrupt the tourism sector, emphasising that the government’s measures are aimed at safeguarding the interests of the nation. “We are on the side of the people. It is critical to have the active cooperation of industry leaders in managing the country’s affairs,” President Muizzu concluded.
The government’s stance on maintaining the foreign exchange regulation highlights its commitment to ensuring economic stability while continuing to engage with key stakeholders in the tourism sector.
