President Muizzu Announces High Compliance with Forex Act as USD 25 Million Converted in First Month

President Dr Mohamed Muizzu has announced that over USD 25 million has been deposited and exchanged with local banks under the newly enacted Foreign Exchange Act within the last month. The President revealed the information while addressing the residents of Hoarafushi, Haa Alif Atoll, as part of an ongoing visit to select islands of the Atoll.

The Foreign Exchange Act, which requires tourism establishments and foreign currency earners to deposit and convert their funds with banks, came into force on 1 January. The law is designed to address the foreign currency shortage faced by the country by establishing a legal framework for the regulation of foreign currency transactions in the Maldives, including the import, use, possession and deposit and exchange of foreign currency. All transactions except those exempt under the Act have to be conducted in local currency.

In his address, the President highlighted efforts over the past 14 months to revitalise the economy, emphasising that addressing the dollar crisis was a key priority. The President noted that the majority of resorts operating in the Maldives are complying with the law and cooperating with the efforts. As of 27 January, USD 25 million had been converted with local banks within just one month, he stated.

The President reiterated his dedication to fully enforcing the law, and asserted that no one would be exempt from it. He stressed that the effective implementation of the law will yield significant benefits for both the public and the government, particularly in facilitating financial ease for Maldivian residing abroad.

Noting that the past year was extremely challenging from an economic perspective, the President said as promised, the government has not resorted to printing money even during the tough situation. The government stuck by the decision to prevent further destruction to the economy, he asserted.

Maldives Economic Gateway Project to Begin Implementation Mid-Year

Shifting focus on the government’s development vision, the President spoke about the ambitious Maldives Economic Gateway project, set to be one of the largest economic initiatives in the country’s history.

The President said the practical implementation of the project is slated for implementation by mid-year. Highlighting efforts to create more economic opportunities, the President described the Maldives Economic Gateway project as a promising project designed to generate new economic opportunities and drive national growth.

"We will undertake efforts to deliver results in its true sense. I am hopeful and confident that this project will benefit the region and the Maldives as a whole,” the President stated, adding that the project is expected to create significant employment opportunities.

The Maldives Economic Gateway project includes the development of international port facilities, ship repair services, bunkering services, the development of cruise tourism and other tourism-related activities, as well as real estate and an export processing zone.

The President has appointed Maldives Industrial Development Free Zone Public Limited as the master developer of the Maldives Economic Gateway integrated project. The development rights for the project have also been given to Maldives Industrial Development Free Zone Public Limited. The President has also decided to designate the area where the project is to be implemented as a Special Economic Zone.

Meeting with Hoarafushi Council, WDC to Identify Key Issues

Prior to addressing the residents, the President met with the Hoarafushi Island Council, Women’s Development Committee (WDC) as well as heads of institutions to identify the development needs of the island.

At the meeting, the island Council requested the government to expedite the work on the island’s hospital project, and asked to find a solution to the garbage management challenges on the island. The Council also asked the government to dredge the island to find a solution to the housing crisis faced by the island’s residents. The Council further requested the government to solve the space constraints of the Hoarafushi port, to upgrade the island’s airport as an international airport, and to establish an Islamic Centre on the island. In addition, the council requested to include Huvandhoo of the same Atoll in the jurisdiction of the council.

During the meeting, the President said that he would work to find solutions to the issues raised by the council members. He was accompanied by the Ministers who attended the meeting. He shared the latest information on the concerns expressed by the committee and the heads of the institutions.

Pledges for Hoarafushi

In his speech, President Dr Muizzu emphasised his commitment to fulfilling his pledges, stating that these promises were made with the conviction that they are essential to realising the community's aspirations. He explained that his government has structured its work to ensure swift progress across all Maldivian islands.

Speaking specifically about Hoarafushi's development, the President announced that the government has opened contractor bidding for housing units across various islands. This initiative addresses what he described as the nation's most pressing challenge – the housing shortage. The President confirmed that 200 housing units planned for Hoarafushi are included in this year's budget.

The President also outlined commitments to land reclamation, waste management systems, and hospital construction. He assured residents that work on sports facilities and harbour development would commence at various points throughout the year, and emphasised that all electoral promises made to Hoarafushi would see progress within the year.

With regard to a request by Hoarafushi Council to develop a futsal ground and handball court on the island, the President pledged to develop both facilities on the island.

Juvenile Halfway House Inaugurated

As part of the visit to Hoarafushi, the President inaugurated the Juvenile Justice Unit, Halfway House on the island. The Minister of Homeland Security and Technology Ali Ihusaan and officials from the Ministry’s Juvenile Justice Department attended the ceremony.

The government has been undertaking significant efforts to strengthen the juvenile criminal justice system. While the decentralisation of services established in the city to the atolls is an important policy of the government, the halfway house established in Hoarafushi in alignment with this policy becomes a dedicated centre to conduct rehabilitation programmes under the Juvenile Justice Act.