The Monetary Authority of the Maldives (MMA) has announced significant updates to its Foreign Exchange Regulations, requiring local banks to market up to $750 million annually from tourism dollar earnings. This initiative aims to enhance the retention of foreign exchange within the country and improve overall liquidity.
Effective today, the new rules stipulate that Category A tourist resorts, integrated tourist resorts, resort hotels, hotels, tourist vehicles, and similar establishments must exchange a minimum of $500 per tourist based on the total number of tourists arriving each month. In contrast, Category B guesthouses and hotels with 50 rooms or fewer are required to exchange $25 per tourist.
Both categories are mandated to deposit the calculated foreign currency with banks by the 28th day of the third month following the end of each calendar month. The MMA may grant exceptions for requests to adjust the exchanged amounts in certain circumstances. Additionally, the regulations prohibit individuals from carrying or retaining foreign currency.
In addition, all transactions in the Maldives are required to be conducted in Maldivian Rufiyaa; however, 12 constituencies have been exempted from this rule. Exceptions include:
- Money spent on the government or the state.
- Transactions with remittance service providers.
- Transactions related to insurance policies sold to the tourism sector.
- Foreign transactions.
- Prices of goods and services sold to tourists.
- Prices of exported goods and services.
- Purchases from businesses that earn foreign currency income.
- Dividend payments and transactions between shareholders in foreign currency-earning businesses.
- Buying and selling shares in foreign currency-earning companies.
- Salary payments and allowances in foreign currency when required by foreign currency-earning businesses.
- Prices of goods and services sold to tourists by duty-free shops.
Individuals conducting transactions in foreign currency will incur a fine of MVR 10,000, while violations of Articles 5 to 9 may result in fines ranging from MVR 5,000 to MVR 1 million.
These amendments officially repeal the Monetary Regulations that have been in effect since March 1, 1987. The regulatory changes underscore the Maldives’ commitment to optimizing tourism revenues and fostering economic stability through improved foreign exchange management.
Effective today, the new rules stipulate that Category A tourist resorts, integrated tourist resorts, resort hotels, hotels, tourist vehicles, and similar establishments must exchange a minimum of $500 per tourist based on the total number of tourists arriving each month. In contrast, Category B guesthouses and hotels with 50 rooms or fewer are required to exchange $25 per tourist.
Both categories are mandated to deposit the calculated foreign currency with banks by the 28th day of the third month following the end of each calendar month. The MMA may grant exceptions for requests to adjust the exchanged amounts in certain circumstances. Additionally, the regulations prohibit individuals from carrying or retaining foreign currency.
In addition, all transactions in the Maldives are required to be conducted in Maldivian Rufiyaa; however, 12 constituencies have been exempted from this rule. Exceptions include:
- Money spent on the government or the state.
- Transactions with remittance service providers.
- Transactions related to insurance policies sold to the tourism sector.
- Foreign transactions.
- Prices of goods and services sold to tourists.
- Prices of exported goods and services.
- Purchases from businesses that earn foreign currency income.
- Dividend payments and transactions between shareholders in foreign currency-earning businesses.
- Buying and selling shares in foreign currency-earning companies.
- Salary payments and allowances in foreign currency when required by foreign currency-earning businesses.
- Prices of goods and services sold to tourists by duty-free shops.
Individuals conducting transactions in foreign currency will incur a fine of MVR 10,000, while violations of Articles 5 to 9 may result in fines ranging from MVR 5,000 to MVR 1 million.
These amendments officially repeal the Monetary Regulations that have been in effect since March 1, 1987. The regulatory changes underscore the Maldives’ commitment to optimizing tourism revenues and fostering economic stability through improved foreign exchange management.
