The Maldives Monetary Authority (MMA) Governor, Ahmed Munawar, has hinted at the possibility of reducing the mandatory USD conversion requirement for resorts in the future. Speaking at the Maldives Association of Tourism Industry (MATI) annual general meeting, he outlined that such changes could take up to two years to implement and would depend on detailed research and the overall performance of the tourism industry.
Under the Foreign Exchange Act, which came into effect in January, resorts are currently required to exchange 20% of their income or USD 500 per guest. Guesthouses, safari vessels, and hotels must exchange USD 25 per tourist or 20% of their foreign exchange earnings. Additionally, non-financial businesses earning at least USD 15 million in foreign currency annually are mandated to convert 20% of their monthly foreign currency income.
During the Act’s drafting stage, MATI had proposed setting the exchange rate for resorts between 10-15%, but the final legislation fixed the rate at 20%. While the governor stated that changes are unlikely in the next two to three quarters, he suggested that adjustments could be made within two years following comprehensive micro-level research.
This development signals potential future flexibility in foreign exchange requirements, which could provide greater financial efficiency for tourism-related businesses while ensuring that the national reserve remains robust.
