President Dr Mohamed Muizzu has assured that the administration would effectively address the dollar shortage issue facing the Maldives.
Meeting with the residents of Huraa, Kaafu Atoll, as part of his two-day tour to select islands in Kaafu and Alifu Alifu Atolls, the President said the dollar shortage faced by the Maldives is a serious economic issue inherited from previous administrations. He described the decision to propose the exchange of the dollars that enter the Maldives as revenue with a local bank as a people-centred approach.
The President noted that the central bank, Maldives Monetary Authority (MMA) had formulated the relevant regulations in the form of a bill and presented it to the Parliament. The bill has not altered the President's previously announced requirements for the bill.
He expressed hope that the bill could be passed before the current Parliament session concludes, noting that the bill's passage would bring wealth and prosperity to the people.
"We made the decision to class [tourism establishments] into categories, with resorts mandated to exchange US$ 500 per guest. This has not changed [in the proposed bill]. Guesthouses and small businesses, city hotels, and liveaboard will be required to exchange US$ 25 per head. I have made it clear that this should not exceed 20 percent of the establishment's monthly revenue. Therefore, as discussed with resort owners, either US$500 or 20 percent of total revenue must be exchanged. The law will mandate this. There are no changes to how I instructed the bill to be formulated," he explained.
The bill, which was presented to the Parliament on Monday, aims to define which transactions can be carried out using foreign currency and establish policies for the inward and outward remittances, deposits and exchange of foreign currency, as well as formulate additional regulations on foreign currency within a legal framework.