President Dr Mohamed Muizzu has revealed that USD 150 million has been remitted to local banks since January under the new foreign exchange regulations—representing a 40 per cent increase compared to previous figures.
The update came during the first episode of Rayyithunnaa Eku, a new podcast hosted by the President’s Office. Speaking on the programme, President Muizzu expressed satisfaction with the level of compliance from tourism establishments, stating that approximately 95 per cent of those required to remit dollars are now doing so. He added that efforts are ongoing to ensure full compliance.
Under the Foreign Currency Act, tourist establishments are required to remit a portion of their earnings to local banks, either as a fixed amount per tourist or as a percentage of monthly revenue. The law categorises establishments into two types. Category-A, which includes resorts, integrated resorts, and private islands, must remit either USD 500 per tourist or 20 per cent of monthly revenue. Category-B, which includes tourist vessels, hotels, and guesthouses, are required to remit either USD 25 per tourist or the same percentage of their monthly income.
President Muizzu highlighted that the law has improved cooperation in foreign currency regulation and pointed to the expanding tourism sector as a continuing source of national revenue. As part of his administration’s ongoing reforms, he announced several key measures: the traveller bank rate allocation has been doubled from USD 500 to USD 1,000, credit card limits have also been doubled, and Telegraphic Transfer (TT) services are being expanded.
He described the remittance of dollars through formal banking channels as a move that benefits the entire nation. “This will drive national progress and benefit all citizens,” he said, thanking those involved in the implementation of the policy. The President also expressed confidence that the US dollar exchange rate would decline over time, with state-owned companies expected to reduce their dependence on informal markets to acquire foreign currency.
Despite the optimistic outlook, the broader economic context remains challenging. Two leading international credit agencies have downgraded the Maldives’ credit rating, citing the country’s high debt levels. The 2025 state budget, valued at MVR 56.6 billion, includes a deficit of MVR 9.4 billion. According to former President Mohamed Nasheed, the Maldives is due to repay USD 800 million in external debt this year, including USD 150 million already owed by March and an additional USD 25 million due in April.
