President Dr Mohamed Muizzu has ratified the Foreign Currency Bill, introducing new guidelines for managing foreign currency transactions and regulating currency exchange practices in the Maldives. The bill, passed during the 60th sitting of Parliament on 12 December 2024, will come into effect on 1 January 2025.
The legislation mandates that all domestic transactions must be conducted in Maldivian Rufiyaa, prohibiting the use of foreign currencies within the country except under specific conditions outlined in the Act. It also prevents charging Maldivian nationals for services provided within the Maldives in any currency other than the Rufiyaa.
To ensure a streamlined exchange process, the Act introduces specific requirements for businesses to exchange foreign currency earned through realised sales proceeds. Businesses are divided into three categories:
| Category A | Resorts, integrated tourist resorts, private island resorts, and resort hotels. Businesses in this category must exchange either USD 500 per tourist per month or 20% of their gross monthly sales with local banks. |
| Category B | Tourist hotels, guest houses, and tourist vessels. These establishments are required to exchange either USD 25 per tourist per month or 20% of their gross monthly sales with local banks. |
| Category C | Businesses not included in Categories A or B but with annual sales or purchase transactions exceeding USD 15 million in foreign currency. These businesses must exchange 20% of their gross monthly sales with local banks. |
In addition to the exchange requirements, businesses operating in the tourism sector or those exceeding the USD 15 million annual foreign currency transaction threshold must register with the Maldives Monetary Authority (MMA). These businesses are also required to transfer their realised foreign currency proceeds to a local bank, ensuring transparency and greater oversight.
The Maldives Monetary Authority has been tasked with overseeing the implementation of the Act, with accompanying regulations to be formulated within two months of its enforcement.
Upon its enactment, the Foreign Currency Act will repeal sections of the Foreign Currency Regulation (2024/R-91) and the Maldives Monetary Act (Law No. 6/81), except for specific provisions outlined in the new legislation.
The Foreign Currency Act represents a significant step towards establishing clear guidelines for currency management in the Maldives, ensuring that financial transactions within the country align with national economic objectives.
