President Dr Mohamed Muizzu has announced that USD150 million has been exchanged to local banks under the new Foreign Currency Law (Forex Law) since January, an increase of 40 per cent from previous figures.
The new law was designed to mitigate the ongoing foreign currency shortage in the Maldives came into effect from 1 January.
Speaking during ‘Rayyithunnaa Eku,’ a podcast hosted by the President’s Office, the President expressed satisfaction with the widespread compliance with dollar remittance regulations, noting that approximately 95 percent of those required to remit dollars to banks are doing so, with efforts underway to include the remaining five percent.
Speaking on the podcast, he highlighted strong cooperation in dollar remittance and underscored the growing revenue from the expanding tourism sector, which continues to benefit citizens.
As part of ongoing reforms, he announced key measures, including increasing the USD500 bank rate allocation for travellers to USD1,000, doubling credit card limits, and expanding Telegraphic Transfer (TT) opportunities.
Describing the decisions to remit dollars to banks as highly beneficial, the President thanked all those involved in its implementation, stating that it would drive national progress and benefit all citizens.
He also expressed confidence that the dollar exchange rate would decline in the future and that State-owned companies would reduce their reliance on the black market for foreign currency purchases.
The law has introduced a framework for businesses operating under Maldivian law to exchange foreign currency obtained from realised sales proceeds. These businesses are required to exchange their foreign currency with banks operating in the Maldives, which, in turn, must sell a specified percentage of these exchanges to the MMA.
Businesses are mandated to register at the MMA and submit regular sales reports on guests.