Minister of Construction and Infrastructure, Dr. Abdulla Muththalib has highlighted the importance of retaining US dollars within the Maldivian banking system for the country's economic stability. He made the statement in a social media post regarding the two new regulations introduced by the Maldives Monetary Authority (MMA) aimed at boosting foreign exchange circulation and compelling tourism businesses to exchange foreign currency through local banks.
In his post, Minister Dr. Muththalib described the move as bold and long overdue, noting that previous administrations acknowledged the necessity of such regulations but lacked the political will to implement them. He reiterated that the retention of US dollars within the banking system is vital for the Maldivian economy, helping to fund imports, service foreign debt, settle card payments, stabilise the value of the Maldivian Rufiyaa, and curb the black market for US dollars.
Additionally, Minister Dr. Muththalib said that a healthy reserve of dollars would help control commodity prices and contribute to financial and economic stability. He also aid that in turn it would support the growth of key sectors like tourism.
The new foreign exchange regulations of MMA require tourism sector businesses to deposit foreign exchange earnings into Maldivian banks. The regulations categorise tourism service providers into two groups, each with specific deposit requirements per tourist. Category A, which includes resorts, large hotels, and tourist vessels, must deposit USD 500 per tourist, while Category B, consisting of guesthouses and smaller hotels, must deposit USD 25 per tourist. Businesses that cannot meet these deposit amounts may apply for exemptions. In addition, 60% of the foreign exchange deposited must be sold to the MMA on a weekly basis, ensuring banks have sufficient foreign currency to meet demand and addressing the current challenges in obtaining foreign exchange.