President Dr Mohamed Muizzu has announced that USD 214 million in foreign currency has been exchanged through the banking system following the implementation of a new law aimed at addressing the nation's foreign currency shortages.
At a press conference held at the President's Office, President Muizzu outlined the impact of the Foreign Exchange Act, which took effect on 1 January. The legislation introduces a structured process for managing foreign currency inflows, requiring tourism establishments and other foreign currency earners to deposit and convert their funds within the banking system. The measure is intended to enhance oversight and stabilise currency flows, ensuring greater control over foreign exchange activity.
Under the law, all foreign currency transactions—except those explicitly exempt—must be conducted in Maldivian Rufiyaa (MVR). The act establishes a regulatory framework governing the import, utilisation, possession, deposit, and exchange of foreign currency. Designed to mitigate economic pressures caused by currency shortages, the law aims to strengthen financial stability and prevent further strain on foreign reserves.
Since the law's enactment, USD 214 million has been exchanged through domestic banks, President Muizzu announced, underscoring the immediate impact of the new regulations.
Entities engaged in foreign currency transactions on a larger scale face additional obligations. Businesses in the tourism sector, along with those conducting transactions exceeding USD 15 million annually, must register with the Maldives Monetary Authority (MMA). They are required to transfer their realised foreign currency revenues to a local bank, aligning their operations with the regulatory framework now in force.