Minister of Tourism Ibrahim Faisal has expressed the government's willingness to address concerns from the tourism sector regarding the recent decision mandating businesses to deposit foreign currency through the banking system. He made the statement during an interview with PSM News.
Speaking to PSM News, Minister Faisal emphasised the significance of the two new regulations issued by the Maldives Monetary Authority (MMA), stating they are crucial for the current situation and will ultimately benefit the Maldivian populace. While acknowledging the tourism sector's concerns, he underscored that these issues can be resolved through open dialogue, reaffirming the government's readiness to listen.
The MMA introduced two new regulations on October 1 aimed at enhancing foreign exchange inflows into the Maldivian banking system and increasing the amount of foreign currency available to businesses and the public. According to the new regulations, tourism sector businesses are required to deposit their foreign exchange earnings in Maldivian banks. The regulations categorise tourism service providers into two groups 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.
The businesses unable to meet these deposit requirements may apply for exemptions. In addition, 60% of the deposited foreign exchange must be sold to the MMA on a weekly basis, ensuring that banks have adequate foreign currency to meet demand and addressing the ongoing challenges in accessing foreign exchange.