The Maldives Monetary Authority (MMA) has reported a 5% increase in the country’s official reserves, reaching USD 708.1 million at the end of last month. The rise follows resorts exchanging more than USD 50 million into Maldivian Rufiyaa under foreign exchange regulations introduced in October.
According to the central bank, the increase in reserves was driven by higher foreign exchange inflows exceeding expenditure in January. Government revenue from foreign exchange-related taxes and fees also saw a 12% rise compared to December.
The MMA had previously estimated that resorts would exchange approximately USD 40 million under the regulation, but actual deposits exceeded this projection, with 90% of resorts complying by depositing foreign currency into the banking system. The MMA acknowledged the tourism sector’s role in supporting the implementation of these regulations.
Under the revised Foreign Exchange Act, which came into effect last month, resorts are required to exchange either 20% of their revenue or USD 500 per tourist. Additionally, Category B establishments—including guesthouses, safari vessels, and hotels—must exchange USD 25 per tourist per month or 20% of their monthly foreign exchange earnings. Other tourist service providers and non-financial institutions that earned at least USD 15 million in foreign currency over the past year must also exchange 20% of their monthly foreign currency income.
The foreign exchange regulations were introduced to improve foreign currency liquidity in the domestic market. While industry stakeholders initially raised concerns, adjustments were made to the policy before its final implementation. The latest figures suggest that compliance from tourism operators has contributed to the growth in official reserves.
